On 9 February 2016, the Lower House of the Parliament has adopted the bill on rental market flexibility. What does that mean for you?
At the beginning of this month, it was reported that not enough rental property is being built to meet the increasing demand for cheap rental property. The government has tried for some time to increase flexibility of the rental market. Since 2013, lessors of social housing can impose an additional increase on the annual rent increase on high-income earners who live in low-rent properties and who are not part of the target group for social housing.
There will be a lot more options to conclude temporary tenancy agreements:
Recently, the highest administrative court has decided that the tax authorities are not authorised to provide information on income of lessees to lessors, whereas lessors need this information to impose an income-related rent increase. The new legislation fills this loophole, probably prior to the next rent increase in July 2016.
The bill encourages housing associations to invest in their housing stock as this is a requirement for the implementation of the income-related the rent increases.
The Rental Market Flexibility Bill still has to be adopted by the Senate. The new rules on short-term rentals/lettings shall only apply to new tenancy agreements that will be concluded after the Act has become effective. Therefore, we recommend to be careful with respect to letting your accommodation temporarily until the Act will be effective. Under the current legislation, temporary rental, in practice, often seems to last (a lot) longer than desired by the lessor.
Would you like to know more about renting and letting accommodation or do you have any other questions on real estate? The specialists at Russell Advocaten will gladly give advice. Please contact us:
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