Why a valid energy label matters more than ever for landlords
At Riva Rentals, we know how important a stable rental income is. A valid energy label is essential. Recent Rent Tribunal rulings show that an incorrect label can lead to significant rent reductions. Landlords have seen rents of thousands of euros cut because of an invalid label. We are happy to help you avoid risks by making sure your energy label is current and meets the latest requirements.
Why an energy label is so important for WWS points
Being able to demonstrate a valid energy label significantly affects the points assessment under the Dutch housing valuation system (WWS). This system determines whether a property may be let in the private rental sector or falls under social housing regulations. Landlords often prefer private-sector letting because it gives them greater freedom to set the rent.
If you do not have a valid label, the energy rating will be determined by the year of construction. This often results in a very low rating and therefore a major loss of points. A modern, valid and up-to-date energy label under the NTA 8800 standard can significantly increase the points score. Improvements made since construction, such as better insulation and more efficient systems, are taken into account directly when the energy label is assessed.
The impact of an invalid energy label
A landlord recently described on LinkedIn just how serious the risk can be if a rental property lacks a valid energy label. A tenant successfully obtained a rent reduction from € 2,331 to € 821 per month because the energy label was not included in the points calculation. Instead, points were awarded based on the construction date, costing the landlord many points and a substantial amount of money.
Another striking example: a property owner expected a rent of € 2,400 per month for an apartment in Amsterdam. After a review by the Rent Tribunal , it was reduced to € 840 because of an invalid energy label. This meant a loss of € 1,500 per month, or almost € 20,000 per year.
The property had an energy label from before 2021 without an energy index, so it was no longer valid. This highlights that energy labels from before 2021 without an energy index no longer meet the requirements of the WWS. Since 1 July 2024, following the introduction of the Affordable Rent Act, the rules have become even stricter. Have you not yet updated your label? Then you risk major rent reductions.
Relying on provisional or outdated energy labels can be dangerous. Although they may be visible on EP-online and the Rent Check, they are not accepted during formal assessments. This could result in a sudden rent reduction following a Rent Tribunal review.
What can you do as a landlord?
At Riva Rentals we are always happy to help you avoid these (unnecessary) risks. Follow these simple steps to protect your rental home and income:
- Check your energy label through the Dutch government’s website (EP-online) and make sure it is up to date.
- Apply for a new energy label if you still have a provisional or old one. We can help you find a qualified assessor.
- Check the energy index on the issued label. Without that index, your label is not valid for the WWS points assessment.
- Invest in energy efficiency improvements if necessary, such as insulation, solar panels or an efficient heating system. This increases your WWS points and rental value. Read our blog to learn how to improve your points score.
- Make sure your valid energy label is on record with Riva.
Contact
Do you have any questions about the importance of a valid energy label, or is there anything else we can help you with?
Contact us by emailing info@rivarentals.com.