The new rental legislation has direct consequences for landlords who want to sell their property. Due to stricter rules around rental prices and tenant protections, a rented property is in many cases worth less at the time of sale than a vacant one. This is especially true for properties in the regulated segment, where the Affordable Housing Act sets the maximum rent. In this article, we answer the most frequently asked questions about what this legislation means if you want to sell your property.
Which properties fall under the new rental legislation?
The new rental legislation — in particular the Affordable Housing Act that came into effect in 2024 — applies to properties in the regulated segment. These are properties with a point score of up to and including 186 points under the Housing Valuation System (WWS). Properties above this threshold fall into the private rental sector and are subject to less stringent regulation.
In practice, this means that a large proportion of Dutch rental properties now fall under the regulated system, including properties that were previously rented out in the private sector. The point score is determined by factors such as:
- Floor area of the property
- Energy label
- Availability of outdoor space
- Quality of the kitchen and bathroom
- Location and assessed property value (WOZ)
As a landlord, it is important to know which segment your property falls into, as this directly determines the rent you are allowed to charge and the rights your tenants hold. It also has direct implications if you want to sell the property.
How does rental legislation affect the sale price of a property?
Rental legislation can significantly reduce the sale price of a rented property. A property rented out under the regulated system typically sells for less than a comparable vacant property, because the buyer is bound by the existing tenant and the maximum permitted rent. Investors are therefore less willing to pay a high price.
There are two scenarios that affect the price:
- Tenanted sale: The property is sold with the current tenant in place. The buyer takes over the tenancy agreement and is bound by the legally permitted rent. This reduces the investment value.
- Vacant sale: The property is sold after the tenant has moved out. Private buyers can then occupy the property as their own home, which generally results in a higher sale price.
The reduction in value for a tenanted sale can amount to ten to twenty percent compared to the open market value, depending on the rent level, the type of tenancy agreement, and the location. In and around Amsterdam, where property prices are high, this difference tends to be larger.
What does rental law mean for selling a tenanted property?
If you want to sell a tenanted property, rental law provides the tenant with strong protections. The tenant is not required to vacate the property upon sale and retains all rights under the existing tenancy agreement. The new owner automatically becomes the new landlord under the same terms and conditions.
This has practical implications for the sales process:
- You cannot simply deliver the property vacant to a buyer if a tenant is in place with a permanent tenancy agreement.
- Temporary tenancy agreements (entered into before 1 July 2024) expire on the agreed end date, but new temporary contracts have largely been abolished in the regulated segment.
- The buyer of a tenanted property takes on all obligations, including any ongoing disputes or outstanding maintenance issues.
It is advisable to seek legal advice before selling, regarding the rights of the current tenant and the options available for selling the property free of tenancy. This will help you avoid unexpected complications during the sales process.
When is a vacant sale the better choice for landlords?
A vacant sale is the better choice when you want to achieve the highest possible sale price as a landlord. A vacant property attracts a wider audience, including private buyers who want to live in it themselves. This group is willing to pay more than an investor who must account for a limited rental income.
A vacant sale is particularly worthwhile in the following situations:
- The tenant has indicated they wish to leave or is open to a departure arrangement.
- The tenancy agreement is temporary and is due to expire in the near future.
- The property is located in a popular neighborhood where demand from private buyers is high.
- The rent is well below market value, resulting in a low investment value.
In some cases, it is possible to agree on a departure payment with the tenant — a financial compensation in exchange for voluntary vacating of the property. Although this involves a cost, a successful vacant sale often more than makes up for that expense through a higher sale price.
How can property sellers best prepare themselves?
The best preparation for landlords who want to sell their property starts with a clear understanding of the legal situation. Check the type of tenancy agreement, the property’s point score, and the current rent. Based on this, you can determine whether a vacant sale is feasible and what the most favorable sales strategy is.
Concrete steps to prepare:
- Have the point score assessed to determine which rental segment the property falls into.
- Review the tenancy agreement for its type, duration, and any termination clauses.
- Request a valuation for both a tenanted and a vacant sale, so you understand the difference.
- Consult a legal advisor about the options regarding the current tenant.
- Determine your sales strategy: tenanted sale, vacant sale, or a combination of both.
Thorough preparation saves time and prevents unexpected surprises during the sales process. Particularly in a market like Amsterdam, where rental legislation has an even greater impact due to high property prices, it pays to approach this carefully and systematically.
How we help you sell your property
At Urban Homies, we guide you through the entire process of selling your property — including when it is currently tenanted. We start with a comprehensive valuation that takes into account current market conditions, the type of tenancy agreement, and the impact of rental legislation on the sale price. This ensures you know exactly where you stand before making any decisions.
What we take care of for you:
- Strategy consultation: tenanted sale or vacant sale — what suits your situation best?
- Professional photography and a tailored listing for maximum visibility
- Due diligence and market research to ensure your property is priced competitively
- Support during negotiations and throughout the entire legal process
- Aftercare right through to signing at the notary
Want to know what your property is worth and what the best approach is given the new rental legislation? explore our sales guidance services or get in touch directly for a no-obligation conversation.
