The Good Landlordship Act

The new rules apply to all types of lessors, from individual landlords to housing associations. The municipality can intervene if the rules are violated. This could have far-reaching consequences, including financial consequences, for lessors and letting agents. In extreme cases, it may even lead to the municipality taking over the management of the leased property. In this article, we would like to make you aware of the key issues of the Good Landlordship Act.

Good landlordship

The legislature defined what ‘good landlordship’ entails in the Good Landlordship Act. Briefly, among other things, a lessor may:

1. enter into a written lease;
2. require a maximum of twice the basic rent as a deposit;
3. provide information on at least:
   a. the rights and obligations of the lessee;
   b. the amount of the security deposit and how and when the security deposit will be repaid;
   c. the arrangements concerning the service costs and the annual provision of a cost breakdown;
   d. the contact details of the property manager;
   e. the contact details of the local hotline for undesirable lessee behaviour;
4. draw up written policies to combat discrimination;
5. not discriminate and intimidate.

Please note, this is not an exhaustive list. The ‘Good Landlordship Regulations’ provide further interpretation of the Good Landlordship Act. In addition, a number of additional rules apply when leasing to migrant workers.

Obligation to inform

The obligation to provide information applies not only to new leases but also to existing ones. It is therefore advisable to prepare an information document for your existing lessees that includes the above issues. This information must be provided to existing lessees no later than 1 July 2024. If the lease was entered into with a migrant worker, the information must be provided even earlier, by 1 October 2023.

Permits

The Good Landlordship Act allows municipalities to introduce a rental ordinance. This will facilitate the introduction of a licensing system for the rental of residential accommodation. The municipality may attach the following conditions to such permits:

i. rules on the maximum rent and rent increase;

ii. the mandatory preparation of a maintenance plan for the leased property;

iii. the lessor must demonstrate how it fulfils the rules of good landlordship.

Enforcement

The enforcement of the Good Landlordship Act will be carried out by municipalities. In this context, municipalities are required to establish a hotline for undesirable rental behaviour so that lessees can easily report it.

A violation of the Good Landlordship Act may have several consequences. For example, a rental permit may be revoked/ refused, an administrative enforcement order may be imposed to undo the violation, a fine may be imposed (up to a maximum of €90,000) and, in extreme cases, the municipality may take over the management of the leased property. The costs of the management will be recovered from the lessor.

Conclusion

A violation of the Good Landlordship Act can have far-reaching consequences. When entering into new leases it is important to ensure that the obligations of the Good Landlordship Act are met to avoid unpleasant situations. Current lessees should also receive an information document in a timely manner.

More information

GMW advocaten can obviously assist you in drafting a standard lease and an information document or selection policy. Please do not hesitate to contact me or one of the other specialists at GMW advocaten to discuss your options.