The new bill for the modernisation of the service costs system was submitted on 4 November 2024. The aim of this act is to better protect tenants against landlords who charge unjustified or excessive service costs.
Service charges are costs that are added to the basic rent of a home and that are related to living, such as the costs of garden maintenance, cleaning or a caretaker. A landlord may charge service charges to the tenant, but is obliged to provide an itemised overview of the costs every year. Only costs actually incurred may be passed on.
Limitative list
An important change is the introduction of a limitative list of categories of goods and services that may be charged as service costs. Currently, the list in the Service Costs Decree is not limitative, which can lead to confusion. The amendment of Article 7:237 of the Dutch Civil Code should make it clear which costs are and are not permitted. This could mean that landlords will no longer be able to pass on some costs, such as luxury amenities in the higher segment. Although the list will be limitative in nature, it will still be necessary to use open standards in some cases. For categories such as movable property, which are difficult to list in full, there will still be room for interpretation.
Actual costs incurred
In addition, Article 7:259, paragraph 1 of the Dutch Civil Code is being amended. The intention is to explicitly establish that service costs are actual costs incurred that also involve reasonable compensation for the service provided. Landlords may not profit from this.
Expansion of the assessment options of the rent assessment committee.
The Rental Commission's assessment options will also be expanded. Currently, the Rental Commission can only assess and determine the advance payment for utilities with individual meters. Soon, the Rental Commission will be able to assess the advance payment of all service costs.
In the event that the landlord does not draw up an annual statement, the rent assessment committee can also determine the annual statement based on standard amounts.
It will also become easier to submit a collective request to the rent assessment committee. This will enable complaints with similar content to be handled more quickly and efficiently and will put tenants in a stronger position with regard to large landlords.
Transitional law
The new regulations concerning service charges are expected to come into effect in 2025. The bill states that the proposed changes do not apply to current tenancy agreements. Current regulations will continue to apply to current tenancy agreements. The legislative change will therefore only apply to tenancy agreements for residential accommodation that are concluded after the new law comes into effect. For housing complexes where all tenants are provided with the same (communal) services, it could become a problem if certain services can no longer be agreed upon with new tenants.
After the bill comes into effect, the Rent Assessment Committee will remain authorised to handle cases relating to utility costs with individual meters for periods prior to the bill coming into effect.
Conclusion
The bill should lead to more clarity for tenants and landlords and simplify enforcement. Time will tell how effective the intended measures will actually be and whether the number of disputes will actually decrease.
Would you like to know more or do you have questions or need advice about (provisions in) your lease, changing the rent or collecting rent arrears? Feel free to contact one of our lawyers. We are happy to be of service and will keep you informed of further developments!