What 2025 has in store for landlords
2025 is well under way! This year brings several important developments affecting landlords. From the full implementation of the Affordable Rent Act to changes to permissible rent increases, preparation is key. In this blog, we highlight the main issues you should be aware of so that you can respond effectively to a changing market.
The Affordable Rent Act: what does it mean for you?
The Affordable Rent Act came fully into force on 1 January 2025, although important changes were already introduced in 2024, bringing new requirements for landlords. With the increase in the deregulation threshold and the introduction of mandatory points assessments, many properties entered the regulated rental sector. During the transition period, non-compliance was often tolerated, but from this year municipalities have stepped up enforcement. Rotterdam City Council has now established a reporting point and a team to address alleged misconduct by landlords.
This means landlords must now fully comply with maximum rents under the housing valuation system (WWS). Temporary tenancy agreements are no longer a standard option, and municipalities have powers to act when rules are breached. Although this creates additional obligations, a more stable rental market also offers benefits. Understanding the regulations and adapting your strategy will allow you to continue letting successfully. Naturally, our professionals are always available to discuss your options.
Rent increases in 2025
From 1 January 2025, the maximum rent increase for private-sector rentals was set at 4.1%, while the maximum permitted increase for mid-market rentals is 7.7%. These increases are linked to inflation and collective-agreement wage growth over the previous year. Landlords of mid-market homes must remain within these limits to avoid fines or complaints from tenants.
At Riva we routinely increase rents every year, depending on the original start date of the tenancy agreement and in accordance with applicable laws and regulations. This is handled automatically, so you do not have to worry about it.
In cities such as Rotterdam, rising operating costs can be challenging, but with smart rental pricing strategies and a focus on high-quality letting, it is still possible to maintain a healthy rental portfolio. By aligning rents carefully with market demand, you can continue meeting your tenants’ needs.
National Mortgage Guarantee (NHG) and investment opportunities
The NHG threshold has increased to € 450,000, giving first-time buyers more financing options. Read everything about the NHG threshold in this blog on the Riva Makelaars website. For investors, this may mean greater buyer interest in certain price ranges. Although the NHG applies only to private homebuyers, a changing housing market may create opportunities for strategic acquisitions and redevelopment of your properties.
Easier access to housing benefit: is your tenant eligible?
From 1 January 2025, the housing benefit rules were simplified, particularly for tenants below state pension age. Although housing benefit mainly applies to regulated rental properties, it can improve affordability for tenants. This can contribute to a more stable tenant base and fewer payment problems. Little changes for private-sector landlords, but it remains important to monitor the wider impact on the housing market.
Our experience and outlook
Since the introduction of the Affordable Rent Act, we at Riva have seen the market changing. Landlords face new rules and obligations, but rental homes remain in demand. We see tenants expecting more certainty and transparency, increasing the need for professional tenant relationships. Although some landlords have had to adjust their rents, demand for quality rental housing remains strong, particularly in cities like Rotterdam.
The new regulations are also shrinking the mid-market rental sector as properties are sold off individually. At the same time, our city continues to develop and remains a very attractive place to settle. Increasing shortages in the private rental sector, alongside continued growth in rental demand, present opportunities for homeowners and landlords who adapt promptly to market developments.
Focus on improved management
This year at Riva we have placed an even greater emphasis on improving our management services. Good property management is essential for successful letting and is only becoming more important as regulations change. We are pleased to invest in more efficient processes, better communication with tenants and landlords, and proactive support to improve our service further. This helps landlords comply with the regulations and avoid problems with tenants. Good management means issues are spotted promptly, preventing larger problems or defects from developing. In this way, we help protect the returns and value of your property.
VVR membership
Riva is a member of the Rotterdam Property Owners Association (VVR). This association works towards a stable, professional property market in Rotterdam. As a VVR member, we keep up with the latest developments and actively support a transparent, fair rental market. This enables us to better support you as a tenant and ensure a dependable living environment. You can find more information about our participation and its benefits on the VVR website.
Contact
As you have come to expect from us, we are closely monitoring these developments. We will inform you as soon as more details become available and are always happy to offer tailored advice. Please do not hesitate to contact us with any questions or requests for clarification. Email info@rivarentals.com.