Housing Valuation System: The Difference Between Enforceable and Mandatory Law

Enforceable

Until July 1, 2024, the housing valuation system was ‘enforceable’. This meant that tenants had to take action themselves by going to the rental commission to obtain a lower rent if it was too high.

Mandatory Law

From July 1, 2024, the housing valuation system falls under ‘mandatory law’. This means it has become a national standard that landlords must adhere to. It is now prohibited to deviate from the housing valuation system (to the detriment of the tenant). Landlords can no longer charge rent above the ‘WWS maximum’ (the maximum rent based on the points system).

Enforcement

Enforcement will now be stricter. Municipalities will oversee compliance. Although it seemed initially difficult to enforce rules for thousands of properties in a municipality rented above the points threshold, control will now be tighter. From January 1, 2025, landlords will be required to conduct a points calculation (even for free sector properties) and attach this to the rental contract. Tenants who register with the municipality for a property (e.g., during a move) must also submit their rental agreement with the points calculation. A municipal employee can then directly verify whether the rent stated in the contract exceeds the maximum allowable rent.

From July 1, 2024, it will no longer be possible to rent a property for an amount above the legally permitted rent maximum, even if the tenant initially accepts it because they are satisfied with the property.

Can a Tenant Agree to Rent Above the WWS Maximum?

No, this is not allowed. Since the housing valuation system is now mandatory law, a tenant cannot agree to a rent that exceeds the legal maximum, even if they sign a written agreement. The municipality can penalize both the tenant and the landlord for excessive rent charges. Landlords also risk substantial fines for charging too high a rent.

Municipal Enforcement on Rent Increases

Municipalities can also enforce rules if a landlord raises the rent too much. Rent increases are capped, and municipalities will monitor and enforce these limits as necessary.