Affordable rent laws, fixed-term leases, and good landlord practices: obligations and opportunities for tenants and landlords

The Affordable Rent Act is intended to make rents more transparent and affordable, the Fixed-Term Tenancy Act aims to provide security for tenants, and the Good Landlord Act focuses on curbing malicious behavior on the part of tenants. These are radical changes, and a lot has changed. In practice, however, we see that both landlords and tenants are not (yet) fully aware of what has changed since 2024/2025, what deadlines apply, and what risks you run if you do nothing.

In this article, I hope to remind you of the essence of what has changed by briefly outlining the most important points.

What has changed?

The Affordable Rent Act introduces an (extensive) points system for a large group of homes and enforces transparency.

New rental contracts must show how the rent relates to the number of points (WWS). Tenants will have better opportunities to have the initial rent reviewed, and municipalities have been given enforcement powers. The Fixed-Term Rental Contracts Act limits the possibility of offering a fixed-term rental contract. The standard is now an indefinite rental contract.

The Good Landlord Act also introduced a large number of obligations for landlords. The Wgv introduced municipal reporting centers for tenants to report violations, linked to a municipal enforcement system. Landlords are therefore exposed to the risk that negligence and malpractice in the private sphere of the rental agreement may lead to administrative enforcement (fines) from the date of entry into force.

Important dates (entry into force)

The Affordable Rent Act entered into force on July 1, 2024. From this date, new rental contracts must be in line with the maximum rent corresponding to the number of points. For mid-range rentals, the mandatory price cap applies to contracts concluded from July 1, 2024. It is prohibited to agree on a higher price for a rental property with 186 WWS points or less. Also, as of July 1, 2024, the previous option of entering into standard fixed-term rental agreements (two years for independent living spaces and five years for non-independent living spaces) was abolished.

Starting January 1, 2025, municipalities started enforcing the law, including for excessive initial rents, but also for other violations of the Good Landlord Act. From this date, a points system will also be mandatory for each new rental contract as information for the tenant, an obligation that was initially supposed to take effect on July 1, 2024, but the Senate postponed the entry into force of this obligation by six months. However, this does not affect the regulation of the maximum price for mid-range rentals as of July 1, 2024.

New: obligation to share the points system with the tenant

Landlords must provide an overview of the points system (WWS) and the associated maximum reasonable (initial) rent with every new rental contract. This applies to social and mid-range rentals, even if the number of points is so high that the property is (still) classified as private sector housing.

Practical: add a PDF of the Rent Check to the lease agreement and refer to it in the contract itself.

Why this is important

Without a points system, you as a landlord run the risk of enforcement (fines/penalties via the municipality) and it is more difficult to substantiate that the rent requested is reasonable. For tenants, the points system is the starting point for checking whether the rent is correct.

If the points system is not used or the rent deviates too much from the WWS, then:

• the Rent Assessment Committee can reduce the rent with retroactive effect (from the start of the contract);
• the municipality can take administrative action (e.g., impose a fine);
• the landlord will be at a disadvantage in further discussions/disputes in terms of evidence.

Please note: 6-month deadline for tenants

Tenants can have the initial rent reviewed by the Rent Assessment Committee within 6 months of the start date. If the initial rent is found to be too high, the rent will be reduced retroactively to the start of the contract. So don’t wait too long: make a note of the start date and submit your request on time.

Are you too late? You can still go to the Rent Assessment Committee. However, the rent will not be reduced from the start of the lease agreement. Being attentive and proactive can, and in many cases will, save you thousands of dollars.

What does this mean for you in concrete terms?

Are you a landlord? Update your rental agreements and rental process. Do not offer contracts if you do not want to rent for an indefinite period, use a standard appendix for the points system, include a clear reference in the agreement, always check that the points system is still correct for each new agreement, and (if necessary) adjust the price before signing. This limits the risk of penalties and legal proceedings.

Are you a tenant? For new contracts (from July 1, 2024), I recommend asking for the points system. Be critical, check the report, and verify the maximum reasonable rent. Are you unsure? Have us review your (initial) rent and don’t lose sight of the six-month term!

How can we help?

At Fruytier Lawyers in Business, we assist landlords in setting up a correct rental process (templates, appendices, WWS check, communication with the municipality/Rental Committee). We also assist landlords if a problem has already arisen. Even in situations that seem hopeless, there is often a solution.

Of course, we also assist tenants in assessing and, if necessary, obtaining a reduction in the initial rent. We work quickly, pragmatically, and with an eye for practicalities.

Questions or doubts? Come and see us

Do you want to be sure that your contracts are in order, do you want to have your initial rent assessed as a tenant, or do you have other rental-related problems? Contact us by email, phone or fill out the contact form for a confidential and no-obligation initial consultation. Our expert rental law attorneys will help you further. You will then know where you stand in no time and avoid hassle and missed months of rent reduction afterwards.