Many tenants are familiar with it, rent increases. If you rent a home, there’s a good chance you received a letter in the mail April 1 with unpleasant news, a rent increase. Sometimes it feels unfair that you should just start paying more, yet a landlord may do this every year. However, your landlord is bound by regulations. This is because there is a maximum rent increase and a maximum rent for the property. The combination of the two can be confusing, and in this article we have listed all the facts to answer the question: what is the maximum rent increase?
Rent increase is the landlord’s right to raise rent annually to adjust for inflation. The time to do this is July 1, so a good chance you’ll get a letter in the mail every year around this time proposing a new rent. How much this new price is allowed to rise is determined by the government, and since May 1, 2021, every landlord is bound by a maximum rent increase. So also housing in the free sector.
Maximum rent increase
The maximum rent increase determines the maximum percent a landlord can raise the rent. In 2022, this was 2.3% for social rental housing and 3.3% for housing in the free sector. Always check what the maximum rent increase is at the time you receive rent increases.
For social housing, there are a few exceptions. Namely, if the rent is below 300 euros, the increase may be up to 25 euros, and if the tenant’s income is high, the increase may be up to 100 euros. Do you have a high income? Then check for the maximum rent increase applicable to you. This looks at your combined income from two years back.
You don’t always have to agree to a rent increase proposal
The landlord may, and almost always does, raise the rent annually. This does not mean that you always have to agree to the rent increase, even if the landlord adheres to the maximum rent increase. In fact, there are certain requirements on which the proposal must meet the increase.
The proposal itself must state the old and new price and percentage increase, along with the day the rent increase will take effect. It should also indicate how you as a tenant can appeal. For social rental housing, the landlord must give at least 2 months’ notice of the increase; for freehold housing, this is not required. When a rent increase is based on income, it must also include an income indicator from the Internal Revenue Service.
If a rent increase proposal does not meet these requirements, the proposal is not valid. The landlord must then prepare a new proposal, and if it does not come in on time, the landlord is obliged to wait until Sept. 1 to raise the rent.
Maximum rent does not always match maximum rent increase
The rent in the social rental sector cannot be higher than determined by the housing valuation system. If the landlord raises the maximum rent every year, the rent may continue to rise above the maximum rent over time.
For example, on July 1, 2020, the maximum rent increase under the valuation system was 2.6% and the usual maximum rent increase was 4.1%. In this case, if your property is already at the maximum rent before the increase, and your landlord sticks to the maximum increase of 4.1%, after the increase you will pay 1.5% (4.1% – 2.6%) too much under the valuation system. This effect can become increasingly large if the maximum rent increase differs from the increase in the maximum rent in the valuation system for several years.
A remodel or renovation may increase the rent by more
Beyond the annual rent increase, there is another time when the landlord may increase the tenant’s rent. In fact, this is allowed even after a remodel or renovation. Indeed, the number of points assigned to the property according to the valuation system may turn out to be higher after a renovation, after which the landlord may increase the rent. Here the landlord is not bound by a maximum rent increase, but is bound by the maximum rent determined by the valuation system.
This is the case, for example, after installing double-glazing, where the energy label improves. Or after renovating a kitchen with additional features. Importantly, there is a clear difference between a renovation and maintenance. No more points are awarded to the property when maintenance is performed, and the landlord may not increase the rent.
Does your rent increase fall outside these requirements? If so, please contact us using the contact form.
Curious about your maximum rent?
Rent increase overview 2022
| Household 1 person | Household 2 or more persons | Maximum rent increase |
| Income lower than 47,948 | Income lower than 55,486 |
|
| Income between 47,948 and 56,527 | Income between 55,486 and 75,369 | 50 euros |
| Income higher than 56,527 | Income higher than 75,369 | 100 euros |
| Free sector | Free sector | 3,3% |
