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Rent increase

Affordability of housing is under pressure

The affordability of housing is under pressure. We believe that a rental home should be and remain affordable for you. For that reason, we allocate our rental homes to new tenants in a responsible manner and we work with the Nibud to help make your housing costs transparent. If you are retired and do not have sufficient financial resources to pay your rent, then we may waive your rent increase this year.

 

Capped annual rent increase

Each spring, you will receive an email or letter from us announcing the annual rent increase for your home. Each year, the government determines the maximum rent increase for our government-regulated homes. In 2022, government-regulated homes are subject to a maximum rent increase of 2.3%.

In 2020, the government decided that rents for homes in the liberalised segment can be increased by a maximum of inflation + 1% until 1 July 2023.

This means that in 2022 there will be a maximum rent increase of (2.3% + 1% =) 3.3% for rental homes in this segment.

Incidentally, we actively cooperate in this initiative and we have now capped our annual rent increase for more than five years.

Our investors agree with us that we should aim for socially responsible returns and not for the highest possible returns.

No income related rent increases

We believe that the best way to boost mobility in the housing market is to build more homes.

For this reason, we do not make use of the option of imposing an additional (income-related) rent increase on tenants who are able to pay more rent.

Rent increase

We gathered the most frequently asked questions and their answers about the rent increase.

When and where can I object to the rent increase?

If you have a regulated rental contract, you can object to the rent increase in certain cases. We abide by the legal rules when increasing the rent. There is no point in objecting to this.

If you wish to lodge an objection, please submit it to us before the 30th of June 2022. Your objection must meet certain formal requirements.
Lack of maintenance is not a valid reason for objecting. For more information, please visit www.huurcommissie.nl.

I disagree with the rent increase. What can I do?

Every year we increase the rent of our homes. If you do not agree with this, it is possible to lodge an objection. A convenient model letter for this purpose can be found at www.huurcommissie.nl. Submit the objection to us no later than June 20, 2022.

If we agree to the objection, you will receive no or a lower rent increase. We will then send you an adjusted proposal. If we do not agree, we can ask the Rent Commission to make a ruling.

What should Vesteda keep in mind when announcing rent increases as of 1st of July 2022?

We only increase the rent of your home once every 12 months. This is regulated by law. In the case of a new lease (after an amendment), the rent may be increased within the first 12 months of the lease.

Regulated rental contracts:

For 2022, the rent increase for regulated rental contracts is set at 2.3%. There will be no income-related rent increase. We must inform our tenants at least two months before the rent increase takes effect on July 1st. So this year, you will receive a notification before the 1st of May.

Liberalised rent contracts:

On the 23rd of March 2021, the First Chamber of Parliament adopted the Act on Limitation of Rent Increases for Liberalised Rental Agreements. This act stipulates that the rent of liberalised contracts may be increased over the next 3 years by no more than inflation + 1%.

If you have a liberalised rental contract, we do not have to send you a rent increase letter. However, we would like to inform our tenants correctly and in good time about the rent increase. We inform tenants with a liberalized rental contract at least one month before the rent increase on the 1st July. So this year you will receive a notification before the 1st of June.

What should be included in a notice of rent increase?

In the case of a regulated rental contract, we must send you a rent increase proposal at least two months before the effective date of the rent increase. You should therefore have received this proposal no later than 30 April if the rent increase takes effect on 1 July.

The letter of the rent increase should contain the following subjects:

  • commencement date of the rent increase
  • Current and new basic rent
  • percentage or amount by which the rent is to be increased
  • whether an income-dependent rent increase applies (including an income indication from the Tax and Customs Administration)
  • how you can lodge an objection.

Other conditions for rent increase:

  • the rent may not exceed the maximum rent according to the point system as a result of the rent increase
  • the rent may not be increased if the Rent Commission has temporarily reduced the rent due to maintenance defects
  • the rent may not be increased if prior to the commencement date of the rent increase a request for a rent reduction has been submitted to the Rent Commission on the grounds of maintenance defects.

In the case of a deregulated lease, there are no requirements for a possible rent increase letter.

What is the maximum rent increase in 2022?

We only increase the rent of your house once every 12 months. This is regulated by law. In the case of a renewed tenancy agreement, the rent may be increased within the first 12 months of the tenancy agreement.

Regulated leases:

For 2022, the rent increase for regulated rental agreements is set at 2.3%. There will be no income-related rent increase. We must inform our tenants at least two months before the rent increase takes effect on July 1st. This means that this year you will receive a notification before the 1st of May.

Liberalised rent contracts:

On 23 March 2021, the First Chamber of Parliament passed the Act on the Limitation of Rent Increases for Liberalised Rental Agreements. This Act stipulates that the rent of deregulated contracts may be increased over the next 3 years by a maximum of inflation + 1%. This means a rent increase of 3.3% (2.3% + 1%).

If you have a liberalised rental agreement, we do not have to send you a rent increase letter. However, we would like to inform our tenants timely and correctly about the rent increase. We inform tenants with a liberalised rental agreement at least one month before the rent increase on the 1st of July. So this year you will receive a notification before the 1st of June.

Does Vesteda have an income-dependent rent increases this year?

This year there is no income-dependent rent increase. This means that we do not request income data from the tax authorities.

Why do I get a different rent increase than my neighbours?

A difference in rent between comparable dwellings can arise due to a difference in the effective date of the rental contract or the type of rental contract (regulated or liberalised).

The annual rent increase is mainly determined by the market rent. The market rent is determined on the basis of:

  • Market analysis based on market developments
  • Competitive analysis based on comparable houses/complexes
  • Age, mutation rate and vacancy of residences (in the complex)
  • Maintenance, finishing and location of residences
  • Affordability

The margin between the contract rent and the market rent determines the extent to which the rent can be increased. Within this space, we obviously adhere to the legal and contractual agreements.

What happens if you submit an objection to the rent increase?

If we declare your objection well-founded, you will receive an amended proposal. If we declare your objection unfounded, we will send your objection to the Rent Commission within six weeks after 1 July 2022 and ask them to make a ruling. We will, of course, inform you of this. It is possible to withdraw your objection in the meantime. If you wish to do so, please let us know as soon as possible.

When do I have a regulated rental contract?

The commencement date of the rental contract and the associated (bare/basic) rent determines whether a residence is regulated or liberalised. You can find this information in your rental contract. In case of a regulated rental contract, maximum rental prices have been set by the government. There is also a maximum annual rent increase.

If, at the start of the rental agreement, the rent was lower than the liberalisation threshold, the property is in the regulated sector. In 2022, the rental price liberalisation threshold is 763.47 euros per month.

You have a rental home in the free sector or a liberalised rental contract if the initial rental price of the home was higher than the liberalisation threshold.

For more information and requirements, please visit www.rijksoverheid.nl.

 

 

How do you adjust your rent payment, if the rent is increased?

If you use a direct debit, we will automatically adjust the monthly amount. If you have a standing order with your bank, then we kindly request you to adjust the amount as of 1-7-2022. If you would still like to authorize Vesteda for a direct debit, you can download an authorization form for this purpose on our website mijn.vesteda.com.

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Contact Vesteda

Please contact us if you would like more information or if you are eligible for our goodwill scheme for pensioners.

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