Rent adjustment: what tenants and landlords need to know

In principle, the rent may increase annually in line with inflation, usually via an indexation clause linked to the CBS price index — but separate rules determined by the government apply to social housing. A rent reduction is also possible in certain cases. Below, you can read how a rent adjustment works and which rules apply to tenants and landlords.

Rent adjustment for residential tenancy

In principle, the landlord may increase the rent in line with normal price level increases. It is customary to include an indexation clause in the lease agreement, whereby the rent is adjusted for inflation (usually based on CBS price index figures). The rent increase must be announced in a timely manner. State the following:

• the current rental price;
• the new rental price;
• the effective date;
• how the tenant can object.

Note the social sector: for social housing, the government determines the maximum annual rent increase, in which the tenant's income may play a role. TODO_VERIFY: the limit for social housing and the maximum rent increases (and any caps in the private sector) are adjusted annually — check the current amounts and percentages. The original article mentioned a limit of €806.06 for 2023 (2022: €763.47).

Forgot to index the rent

Sometimes a landlord forgets to index the rent. Usually, this is not a disaster: you can still claim the underpaid rent, but due to the statutory limitation period of five years, only for the last five years. However, this is not possible in the case of social housing: forgotten indexations are, in principle, lost there.

Rent reduction is also possible

Not only an increase, but also a decrease may be at play:

• Social housing: if the tenant has lived in the property for at least six months, he can request a rent reduction, for example if the rent is unreasonable, income has decreased since the last increase, or the property has maintenance defects.
• Private sector: here the options are more limited and there is no maximum rent. However, defects may give rise to a rent reduction. If the tenant and landlord cannot reach an agreement, the court will decide.

Finally, the parties can always voluntarily agree on a lower rent, for example if the tenant is temporarily unemployed. Be sure to properly record such agreements and concessions in writing.

Frequently Asked Questions

Is the landlord allowed to increase the rent every year?

In the private sector, rent may in principle increase annually in line with inflation via an indexation clause. For social housing, the government determines the maximum increase. Check the current rules.

What if the landlord forgot the indexation?

In the private sector, you can usually still claim the missed increase for the last five years. In the case of social housing, forgotten indexations are, in principle, lost.

Can I request a rent reduction as a tenant?

In the case of social housing, this is subject to conditions (after six months of occupancy, in the event of unreasonable rent, a decrease in income, or defects). In the private sector, this applies primarily to defects. If a joint agreement is not reached, the judge will decide.

Does a rent increase need to be announced?

Yes. Announce the increase in a timely manner, stating the old and new rent, the effective date, and the possibility to object.

Questions about adjusting the rent?

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