MP's vote to ban high rental housing deposits as good landlord law heads to Senate

The Tweede Kamer, the lower house of the Dutch parliament, approved a proposal on Tuesday to ban unjustifiably high deposits in the rental sector. This proposal was an amendment put forward by DENK MP Stephan van Baarle to the Good Landlordship Act, which was approved that day by the Tweede Kamer. The law still needs to be brought to a vote in the Eerste Kamer, the Dutch Senate.

If the law passes the senate, landlords will not be allowed to ask for more than twice the basic monthly rent as a deposit. They will also have to actively inform their tenants about the exact amount of the deposit and repay it within two weeks when the tenant moves out. This period may be longer if there is damage to the property or if the tenant has fallen behind on rent.

This had not yet been regulated by law. Currently, anyone who thinks the deposit is too high can go to court, which will then decide whether this is correct.

The proposal was put forward by Van Baarle because he received indications that landlords often retain the deposit and see it as a source of income, while it is actually intended for specific purposes, like repairing damage. To protect tenants, Van Baarle wants to have the maximum deposit laid down in the new Good Landlordship Act from Housing Minister Hugo de Jonge.

The housing minister previously stated that he supports the proposal's aim. “After all, there are currently no established rules regarding deposits, which makes it difficult to control, and allows for excesses." De Jonge thought DENK's proposal could be implemented by municipalities.

De Jonge said this new law should help combat abuses in the rental sector. The law also includes standards regarding intimidation, discrimination, and other forms of fraudulent rental practices. Municipalities will also be able to intervene in areas where problems occur more frequently. There, they can enforce stricter requirements by making landlords obtain a mandatory permit.

Now that the Tweede Kamer has approved De Jonge's law, the Eerste Kamer will have to examine it. The law will come into effect if accepted by a majority of senators.