Mandatory for medium expensive rental properties
Mandatory for middle-priced rentals
As of 1 July 2019 the new Housing Regulation The Hague has entered into force. The most important aspect is that in some cases tenants must apply for a housing permit if the private rental accommodation falls below 185 points. The city council of The Hague wants to reduce the crisis on the housing market with these measures. What will change?
What is a housing permit? This is a permit which a new tenant must apply for at the municipality. The municipality checks with this permit whether the rental property matches the income of the tenant.
Is this permit mandatory for every rental home? No, the permit only concerns social and mid-priced rentals with a rental price up to € 950,- per month (July 2019 price level). A permit is also mandatory if the rental property has 185 points or less according to the Housing Valuation System.
The Housing Valuation System? This is a system where the maximum rent is determined based on points received, for example, for the surface of a home and for the number of rooms. The more points a rental accommodation has, the higher the rental price may be. It is important that the permit requirement for medium-priced rental properties does not mean that the rental price of these properties is also regulated. This applies to homes between 145 and 185 points.
For homes below 145 points, the tenant can request a rent adjustment from the rent commission. The rental price for medium-priced rental properties therefore remains freely negotiable despite the fact that a housing permit must be applied for.
And for social rental properties with a rental price of up to € 737,14 per month (up to 145 points)? The tenant must also apply for a permit in this case.
Back to those homes between € 737,14 and € 950,- per month, which income 'fits' with these rentals? The municipality has set the annual income for these homes at a maximum of €
58.583, - for a single-person household and a maximum of € 68.583,- for a multi-person household. If a tenant earns more, he must therefore look for another rental (which has more than 185 points).
Is the permit requirement also applicable for existing tenants? No, it is only mandatory for tenants who sign a lease agreement from 1 July 2019 and onwards
What are the consequences if this law is not followed by tenants and landlords? It is not allowed to rent out middle-priced rental accommodations without housing permits. This means that, in principle, the housing permit must have been granted before the first use. The period for granting permits is eight weeks, which can be extended once by an extra four weeks. Both the tenant and the landlord can be fined for violation of this prohibition. The fine for the tenant is € 410,-, for the private landlord € 5,000,- and for a professional landlord € 10,000,-.
Does this mean that the tenant can only move into the new home once the permit has been granted? We believe that if the tenant meets the income requirement and there is no other reason why the permit should not be granted, the tenant can already occupy the home during the permit application period.
A new initiation, how do we put the new rules into practice? Since the income is leading, we will have to verify the income at an early stage. For new initiations for The Hague, it is therefore advisable to submit to the realtor a pro forma pay slip and / or employer's statement in addition to personal housing preferences.
If the client (possibly together with a partner) earns more than the stated upper limit, they will only be able to rent properties that have more than 185 points. For a certain part of the new internationals, this will mean that they will have to allocate substantially more budget for housing due to these new rules. It is advisable to advise clients to take the income limits into account and, in some cases, to offer a lower wage for the initial period of the employment contract, as this will on balance be more favorable.
Applying for a permit, how does that work? Applying for a permit can be done via DigiD ( https://www.denhaag.nl/en/permits-and-exemptions/residential-permits/affordable-housing-permit.htm ) or in person at the municipality. The first practice reports indicate that a digital application is usually processed faster (2-3 weeks), an application directly from the municipality appears to take approximately 3-4 weeks. More information about the housing permit can be found on the website (www.denhaag.nl) of the municipality of The Hague.
If you have any questions please call our office at 070 204 1122 or send an email to email@example.com
VERRA Expat Home Services B.V.