Around Utrecht Centraal, where tens of thousands of commuters daily race to work via the A12 and A27, tenants notice that their monthly expenses sometimes rise faster than the traffic on the ring road. A recent ruling by the Hoge Raad is set to change that.
Background to the ruling
In recent years, landlords have applied WOZ increases directly to unregulated sector rents. A 15 per cent jump in the WOZ value resulted in the same percentage rent increase. Tenants in neighbourhoods with heavy commuter traffic felt those extra tens of euros per month directly in their wallets and initiated proceedings on the question of reasonableness.
The decision from Den Haag
The Hoge Raad has laid down three clear principles:
1. WOZ linkage is not automatic justification
A higher WOZ value often reflects speculation rather than genuine improvement of the dwelling. Tenants are not required to pay for that speculative premium.
2. Tenant may demand substantiation per property
Landlords must henceforth demonstrate that the increase is linked to actual maintenance or objective market developments in the street, and not solely to the annual WOZ assessment issued by the municipality.
3. Unreasonably onerous clauses are voidable
Linkages without a cap or exception qualify as unreasonably onerous (article 6:233 BW) and are voidable.
Consequences for tenants in the region
- Increases exceeding inflation plus maintenance costs can be challenged
- Overpaid amounts can be reclaimed for up to three years
- Written objection within six weeks of notification remains mandatory
- Disputes are handled by the Huurcommissie or the kantonrechter of the Rechtbank Midden-Nederland in Utrecht
What changes for landlords?
Existing contracts:
- Convert WOZ clauses into an inflation-plus-maintenance formula
- Keep concrete substantiation per dwelling available
- No longer threaten termination directly when a tenant contests an increase
Broader implications
The ruling forms part of a trend of increasing tenant protection. It is expected that other automatic mechanisms, such as uncapped CPI linkages, will also be restricted in the coming years.
Practical advice for tenants
Have you received a WOZ increase in the past three years that you considered excessive? Request written substantiation, retain all correspondence and contact the Juridisch Loket Utrecht or a specialist. The office of Arslan at Vredenburg 40, 3511 BD Utrecht (030 - 8200 200) will be happy to assist you. The three-year limitation period for recovery (article 3:309 BW) begins to run once you could reasonably have been aware of the unlawfulness.