Rental Market Flow Act in Rotterdam
The Rental Market Flow Act is a major legislative amendment aimed at making the rental market in the Netherlands—and specifically in Rotterdam—fairer and more accessible. It imposes stricter limits on temporary rental agreements, clarifies boundaries between rental sectors, and addresses excessive rents. The goal is to promote turnover, enabling first-time renters in this port city to more easily find affordable housing and easing the overheated local market.
What does the Rental Market Flow Act mean for Rotterdam?
This act, part of the Good Landlordship Act, took effect on 1 July 2023 and amends the Dutch Civil Code (DCC) to tackle issues in Rotterdam's rental market. It focuses on curbing temporary contracts, more precisely defining mid-range and private sector rentals, and protecting tenants from unfair practices such as exorbitant interest rates. For landlords in Rotterdam, this means additional responsibilities, while tenants in this riverside city enjoy stronger safeguards against instability.
The act responds to acute housing shortages in Rotterdam, where demand for social and mid-range rentals far exceeds supply, partly due to the city's appeal as a logistics hub. By regulating temporary rentals, the government prevents tenants from lingering in uncertainty and overloading the social sector. This article builds on our earlier overview of rules for temporary rental agreements and highlights the impact on the Rotterdam market.
Legal basis
The act is codified in Book 7 of the Dutch Civil Code, particularly Articles 7:232 to 7:271 DCC. Key changes include:
- Article 7:232(1) DCC: Temporary contracts permitted only in cases such as vacancy or renovation. Indefinite-term contracts are the default, unless there is compelling reason otherwise.
- Article 7:249 DCC: Private sector rentals require income criteria: rent above €1,123 (2024) qualifies if income exceeds 1.2 times the social minimum.
- Article 7:268 DCC: Landlords must meet stricter requirements, such as obtaining a permit for room rentals from the Municipality of Rotterdam and facing fines for illegal subletting.
The act also amends the Financial Supervision Act (FSA) to curb rent allowance abuse. The Rent Assessment Committee plays a larger role in rent reviews under Article 7:247 DCC.
Transitional provisions
Existing contracts before 1 July 2023 are subject to transitional provisions: they continue until expiry, but extensions must comply with the new rules. This minimizes disruptions in Rotterdam while compelling landlords to adapt quickly.
Practical examples in Rotterdam
Suppose you are a first-time renter in Rotterdam leasing an apartment in Rotterdam-South for €1,200 per month. Before the act, the landlord could offer a two-year temporary contract. Now, they must justify its temporary nature, such as demolition plans in the port area. Otherwise, it becomes an indefinite-term contract with eviction protection.
Another scenario: a family with a mid-range income (€45,000 per year) seeks a €900 rent property in Rotterdam-West. Under the new rules, this falls into the regulated sector (up to €808 in 2024), but for 'mid-range rent' (€808 to €1,123), prices may be higher. Tenants can challenge this with the Rent Assessment Committee or seek advice from the Rotterdam Legal Aid Office on lowering the rent.
For landlords: an investor renting rooms in the Feijenoord neighborhood must apply for a permit from the Municipality of Rotterdam. Failure risks fines up to €21,750 per violation, as seen in illegal Airbnb activities in the city.
Rights and obligations of tenants and landlords in Rotterdam
Tenants' rights:
- Automatic conversion to indefinite term unless temporariness is justified.
- Option for rent review by the Rent Assessment Committee if the price is unreasonably high.
- Protection against income- or origin-based discrimination in housing allocation.
Tenants' obligations:
- Disclose income transparently when applying for mid-range rentals.
- No subletting without landlord approval.
- Contribute to minor maintenance, such as reporting defects.
Landlords' rights:
- Free pricing in the private sector, provided it is market-conform.
- Eviction for non-payment or nuisance, subject to review by the District Court of Rotterdam.
- Discounts on rent increases for sustainable investments.
- Use of a statutory standard contract.
- Annual overview of service charges.
- Registration in the landlord registry if owning more than 50 properties.
Landlords' obligations:
These rules balance the market, but disputes in Rotterdam often end up before the district judge at the District Court of Rotterdam. The Rotterdam Legal Aid Office provides free initial assistance for rental queries.
Comparison of rental sectors in Rotterdam
| Sector | Rent threshold (2024) | Regulation | Example in Rotterdam |
|---|---|---|---|
| Social housing | Up to €808 | Max. points system, Rent Assessment Committee review | Housing association property in Rotterdam-North for low incomes |
| Mid-range rent | €808 - €1,123 | Limited increases, income-based | Private rental in Rotterdam-South for mid-range incomes |
| Private sector | Above €1,123 | Free pricing, no allowance | Luxury apartment near the Erasmus Bridge |
Frequently asked questions for Rotterdam
Can I extend my temporary rental agreement in Rotterdam after 1 July 2023?
No, extensions are only possible under new exceptions, such as vacancy or temporary port work. Otherwise, it becomes a permanent contract. Contact the Rotterdam Legal Aid Office or Rent Assessment Committee for personalized advice.