The New ROZ Model Tenancy Agreement for Residential Property

This new model includes various adjustments compared to the 2017 version and has been aligned with recent legislation, such as the Fixed-Term Tenancy Act, the Affordable Rent Act, and the Good Landlordship Act. Additionally, several provisions have been modified in response to the ongoing discussion on rent increase clauses and other unfair terms. This article outlines the most important changes.

Duration

Due to the Fixed-Term Tenancy Act, it is no longer permitted to enter into a temporary, fixed-term tenancy agreement (previously a maximum of two years for independent residential units and five years for non-independent units). The new model now offers only two options: an indefinite tenancy agreement with a minimum term or an indefinite tenancy agreement without a minimum term. As a result, tenants are entitled to tenancy protection from the start of the agreement, and landlords can only terminate the tenancy in accordance with a statutory termination ground.

Rent Price Segments and Rent Adjustment

Under the Affordable Rent Act, there are now three rent price segments: (i) social housing / lower segment, (ii) mid-range rental / mid-priced segment, and (iii) liberalized rental / private sector. Article 5.1 regulates the annual rent adjustment for social housing and mid-range rentals, while Article 5.2 covers annual rent adjustments for private sector properties. This article has been widely debated in case law regarding its legal validity, which is why the court of Amsterdam has asked prejudicial questions to the Supreme Court.

Following these questions, The Supreme Court ruled on November 29, 2024 that a rent adjustment clause that provides that the rent is increased yearly based on the indexation (CPI) and additionally with a surplus of (maximum) 3% is in principle not considered unfair. The ROZ has not yet confirmed in their model that such rent adjustment clause is indeed fair. For more information, I refer to this article.

Utilities

The provision of utilities is now split into two variations: one where an individual meter is present and one where no individual meter is available in the rented property. In the latter case, the landlord is responsible for the supply, and billing is included in the service costs.

General Provisions

• The profit-sharing clause has been removed from Article 1.1, as it was potentially an unfair term. However, landlords can still rely on statutory provisions to claim profit-sharing.
• A provision has been added allowing landlords to periodically inspect the rented property. However, its enforceability is uncertain, as landlords are only permitted to enter under specific circumstances, while tenants have the right to undisturbed enjoyment of the property.
• Since multiple courts have ruled that the clause on extrajudicial collection costs is unfair, this provision has been removed.

More Information

In conclusion, the changes to the tenancy agreement and general provisions are limited. If you have any questions about the new model agreement, please feel free to contact one of our tenancy law specialists.