Court: Amsterdam landlord must pay to install insulating windows in listed building

The owner of a monumental building in Amsterdam must install double glazing and other insulation measures and cannot pass these costs on to the tenant, the Subdistrict Court of Amsterdam ruled last week. The improvements were ordered to be carried out within four months. The ruling will have consequences for many private landlords, Vastgoed Belang, the trade association for real estate landlords, told RTL Nieuws.

The building was constructed in 1665 and is a national monument. The tenant rented a 75 square meter apartment in the building for 1,500 euros at the end of 2016. They currently pay just over 1,655 euros per month. A representative for the tenant contacted the landlord a year ago to complain about the use of single-glazed windows, and a lack of adequate insulation under the roof and within the walls.

The resident of the 17th-century building in Amsterdam asked the landlord to take insulation measures like double glazing because they couldn’t warm their home properly or efficiently. The landlord said they would, but only with an accompanying rent increase. The landlord argued that the tenant knew they were moving into an old, draughty building.

The plaintiff in the case, and another tenant in the building, "are of the opinion that there are serious defects that are detrimental to their quality of life, and that must be remedied by the landlord," they argued. "Although clients' homes are part of a monument and are not built with insulating windows and roof insulation, this does not alter the fact that a tenant in the 1920s could expect such insulation to be present or installed, especially if there is a noticeable draft and cold."

A few months later, an architect asked to estimate the situation told the building owner, real estate company Famongo, that the issue should not be considered a defect. The building "is a monument and was erected long before the government imposed requirements on thermal insulation of buildings. According to the current building code, no thermal insulation requirements are imposed on existing buildings," the architect wrote.

"With a view to energy consumption and living comfort, it is certainly a good idea to improve the thermal insulation of the home, but these measures can then be regarded as home improvements." A month later, in August, the cost of replacing the windows, frames, and doors was estimated at close to 35,300 euros.

The tenant took the matter to court, and the court ruled in their favor. The court ordered the building owner, real estate company Famongo, to replace all single-glazed windows with double-glazing and close all gaps and cracks. Famongo must do so at their own expense and cannot pass the costs on to the tenant through higher rent, the court ruled.

The court said Famongo incorrectly interpreted the definition of a defect in the situation. "The term 'defect' does not so much concern the rented property, but the performance to be delivered by the landlord, namely providing the rental enjoyment that the tenant may expect. A defect is therefore not limited to defects in the material condition, but also includes 'intangible' defects," the court wrote. "Furthermore, Article 7:204 of the Dutch Civil Code contains a legally objective quality standard: it comes down to a tenant's expectation of enjoyment with regard to a well-maintained property of the type that has been rented out."

The court also ruled that the plaintiff was correct in referencing the energy crisis, the need for energy-saving measures, but also noted the political debates following the Paris climate summit, and the Dutch Supreme Court's ruling in the landmark Urgenda case, suggesting businesses be held accountable for climate-related issues. "These social developments refute Famongo's defense that the mere fact that [plaintiff] knew that she was going to rent a house with partially single glazing must lead to the conclusion that single glazing cannot be a defect."

In the verdict, the court ordered Famongo to replace sliding windows and casement windows at the front with either double-glazed or vacuum glass. Kitchen and dormer windows issues must also be addressed, and weather sealing must be repaired around the stained glass attic windows. The court denied the plaintiff's claim for installing new ventillation grilles in the roof and some windows, adding insulation to an interior wall, and improving roof insulation material. Famongo was also ordered to pay about 450 euros in court costs and fees.

According to Kavis Partiman of Vastgoed Belang, the ruling could result in a significant cost item for many owners of monumental rental homes. “We are surprised by this ruling,” Partiman told RTL.

The government doesn’t consider single glazing a defect in a monumental building, so building owners do not have to do anything about it. But this ruling could change that. “The majority of monumental buildings still have single glazing.”

According to the Dutch Sustainable Energy Association (NVDE), there are over 25,000 monumental rental properties owned by private landlords in the Netherlands.