Policy book on valuation system of non-self-contained housing Subscribe to DeepL Pro to translate larger documents. Visit www.DeepL.com/pro for more information. V e r s i o n c o n t r o l P u b l i c a t i o n d a t e A d a p t a t i o n July 1, 2 0 1 6 This version replaces the July 1, 2013 manual. The policy book is at amended below: • Limits adjusted for halving deduction for noise from road-rail and industrial noise. • Clarification note for valuation of owned and shared facilities. As of July 1, 2016, the Monuments Act expired and became the Heritage Act. Oct. 5, 2016 This version replaces the policy book dated July 1, 2016. The policy book is on amended below: • To clarify the policy for protected city and village landmarks, regarding the granting of the 15% surcharge on top of the maximum rent, Article 8a is provided with additional explanation. June 1, 2017 This version replaces the policy book dated Oct. 1, 2016. The policy book has been modified in the points listed below: • In section 6. Quality Factors, the policy for valuing outdoor spaces has changed. Previously, the area of the largest outdoor space (private or communal) was normative. The new policy dictates that, in the presence of both a private and common outdoor space, the private outdoor space should be valued first. June 1, 2018 This version replaces the policy book dated June 1, 2017. The policy book is supplemented by the following information: The policy book includes an explanation of the legislation and implementation policy, regarding the extended filing period for the initial rent review for temporary leases (Art. 7:249(2) of the Civil Code). August 1, 2021 This version includes an addition related to the petition procedure review of the initial rent (Article 7:249 of the Civil Code) Version August 2 0 2 1 Policy book | 3 T a b l e o f c o n t e n t s Version control 2 F o r e w o r d 4 Lease Market Transition Act 2015; temporary leases 5 When is there a temporary lease? 5 Review of initial rent for temporary leases (Art. 7:249(2) BW) 6 How do you handle this basic manual? 7 ANNEX I to the Housing Rents Decree 8 ARTICLE 8a Residential Rents Decree 27 Article 8a 27 4 | Policy book F o r e w o r d The Rent Commission is an independent administrative body whose duties include ruling on the amount of rent increases following the establishment of housing conversions. In carrying out this task, it is bound by laws and regulations. These legal provisions are the starting point for the Rent Commission. In recent years, the practical elaboration of these provisions has led to implementation policies. The purpose of this policy book is to provide insight into the Rent Commission's implementation policy with respect to testing the reasonableness of rent increases following home improvements. The Rent Commission will act in accordance with these policies and only deviate from them, with justification, insofar as a specific case compels it to do so because of disproportionate consequences for the interested party(ies) in the event of full application of this policy. This policy book applies to petitions filed with the Rent Commission on or after July 1, 2023. The Rent Board, The Hague, July 1, 2023 Policy book | 5 R e n t a l M a r k e t T r a n s i t i o n A c t 2 0 1 5 ; temporary l e a s e s When is there a temporary l e a s e ? With the entry into force of the Lease Market Transition Act 2015, it has become possible to conclude short-term rental agreements. Under Section 7:271(1) of the Civil Code, far-tenants and tenants can enter into a temporary lease. These temporary agreements must meet some conditions. Characteristics of temporary lease agreement non-self-contained housing accommodation • For the duration of up to 5 years (this term must be in the lease agreement); • Ends not by notice, but when the term has expired (if the tenant wants certainty about the termination of the lease after the term has expired, he would do well t o give notice of the lease by that end date anyway); • The tenant may always terminate the temporary lease in the interim against an agreed day for payment of rent; • No later than 1 month before the expiration of the term (but no earlier than 3 months), landlord- tenant will send a notice to tenant (if this is not done or not done in a timely manner, an indefinite lease will be created after the expiration of the term). When handling and assessing a petition, the Rent Commission must check against these conditions and characteristics to determine whether there is a temporary lease within the meaning of Section 7:271(1) of the Civil Code. If the lease does not meet the conditions, it is a regular lease. The Rent Commission takes a linguistic interpretation as a starting point. Where appropriate, supplemented by statements from the parties in this regard. By the way, the law does not allow entering into a series of temporary leases with the same tenant. The second temporary lease is considered an extension of the indefinite lease. The so-called "contract by its nature of short duration" must be distinguished from the temporary lease. Based on the law, the Rent Commission has no jurisdiction if such a contract is involved. 1 In accordance with the legislator's intention, the Rent Commission applies a strict interpretation here: only if there is no doubt whatsoever that this is not a temporary contract within the meaning of Section 7:271(1) of the Dutch Civil Code will the Rent Commission declare itself incompetent and the application inadmissible. The so-called short-stay agreements will also be assessed in this manner. 1 See Article 2 of the Housing Rents Implementation Act: "This Act shall not apply to contracts of rental and leasing of housing accommodations that involve a use, which by its nature is only of short duration." 6 | Policy book Review of initial rent for temporary leases (Art. 7:249(2) B W ) Where temporary leases are involved, a tenant may request the Rent Commission to rule on the reasonableness of the agreed rent until no later than 6 months after the expiration of the lease for a period of 2 years or less. In that case, it is reasonable to argue that it is no longer possible to determine with any degree of certainty what the condition of the housing accommodation was at the commencement of the lease and whether the landlord was aware of any defects found. After all, the period between review (read: examination in the living space) and the conclusion of the lease can be several years. This certainly applies to a tenant of the lease extended for an indefinite period of time (e.g. due to the lack of knowledge) who has the rent reviewed. By the way, it does not follow from the legal text until when these tenants can request a review. 1. Until when can the tenant of a lease extended indefinitely file an application for review with the Rent Commission? If a temporary lease is continued (e.g., because the landlord did not send a notice to the tenant or did not do so in a timely manner), then this lease is for an indefinite period of time. In that case, a tenant can submit a request to the Rent Commission for a review of the initial rent until no later than 6 months after the expiration of the temporary lease, and thus within 6 months after the start of the indefinite lease. What review framework does the Rent Commission use in the event of any defects found in a rent review ? a ) If the lease has already been terminated, the Rent Commission does not, in principle, pronounce a rent reduction in connection with any defects. After all, the legislator did not i n t e n d with the Doorstro- ming Rental Market Act 2015 and the expansion of the review options to also review the quality of the property at the start. Moreover, the purpose of a temporary reduction of the rent due to defects is to encourage the landlord to repair the defects found. If the lease has already been terminated, the tenant no longer has an interest in repairing any defects. The Rent Commission can only grant a reduction for defects if the tenant can prove that the defect was already present at the start of the lease and that the landlord was aware of it. In that case, any reduction in the rent will take effect up to a maximum of 6 months prior to submitting the request to the Rent Commission (following on from Section 7:257(3) of the Civil Code). b ) If the temporary lease is continued for an indefinite period, the Rent Commission will in principle not award a rent reduction in connection with defects unless the tenant can prove that the defect was already present at the start of the lease and that the landlord was aware of it. Any reduction in rent will in that case take effect up to a maximum of 6 months prior to filing the request with the Rent Commission (following on from Section 7:257(3) of the Civil Code). Policy book | 7 How do you handle t h e s e b a s i c m a n u a l s ? First you will read the literal text of Appendix I under B, to the Housing Rents Decree. Then, on the left (even) page numbers, you will always find a portion of the literal text of Appendix I, under B. In these sections you will see that certain parts are bold and underlined as well as having a number. This number refers to the (odd) page immediately to the right. There, under the same number, is an explanation or further description. (1) Important The literal text of Annex I(B) does not distinguish between "not an independent living accommodation" and "dependent living accommodation." The further explanation uses only the term "non-self-contained housing". (2) Important! Before you start working with the point scoring system, it is good to be aware of the following: Independent living accommodation exists if: (a) one must use essential facilities (kitchen and/or toilet) in common; • The level of amenities in the living space when the lease was entered into determines the valuation, i.e. including the amenities/improvements, which a previous tenant made. • If the new tenant has taken over amenities/improvements from the previous tenant with the landlord's consent, they are not valued. • Changes, agreed upon by the parties after entering into the lease, only count if not paid for by or on behalf of the tenant. • Improvements, which the tenant has made at his own expense, only count if the landlord has provided compensation to the tenant for this, which is reasonable in relation to the costs incurred. 8 | Policy Book ANNEX I to the Housing Rents Decree B. The valuation system for housing which is not an independent dwelling. p o i n t s 1. Area (1) of room(s) and of a kitchen, belonging exclusively to the dependent living space per m² 5 Area of heated, communal living spaces, including a living kitchen, of at least 15 m² per m²5 , to be divided by the number of l i v i n g s p a c e s 2. Heating options - In the presence of central heating, per m² (2) area of heated room(s) and kitchen, belonging exclusively to the non-self-contained living quarters ¾ - In the presence of a gas connection and also a chimney or flue for gas stove(s) 3 - In the presence of only a serviceable chimney 0 3. Cooking facility - A kitchen (3) in a separate room, belonging exclusively to the dependent living accommodation, or a kitchen (3) in a living room, belonging exclusively to the dependent living accommodation, if this room measures at least 25 m² (2) 20 - A kitchen (3) in a living room, belonging exclusively to the non-self- contained living space, if this room is less than 25 m² (2) , but measuring more than 15 m² (2) 10 - A kitchen (3) , belonging exclusively to the non-self-contained living space, but located in a common room 10 - A common kitchen (3) , belonging to no more than 5 housing units 4 - A communal cooking facility, belonging to more than 5 housing units 0 - A cooking facility that does not meet the requirements of a kitchen (3) 0 Policy book | 9 ANNEX I under B (continued) 4. T o i l e t p o i n t s - A toilet, belonging exclusively to the non-self-contained living space 12 - A common w.c., belonging to no more than 5 dwelling units 2 - A common w.c. belonging to more than 5 residential units 0 - A w.c. that can only be reached by outside air 0 5. Washing facility - A shower or bath belonging to the non-self-contained living space 1 5 - A shared shower or bath, belonging to no more than 8 housing units 3 - A shared shower or bath belonging to more than 8 housing units 0 - A sink (or countertop not counted as a kitchen) located within the non-self-contained living space or in a space belonging to exclusively to the non-self-contained living quarters 1 0 - A sink (no sink, or fountain in toilet) in a common but lockable space, belonging to non more than 5 housing units 2 - A sink belonging to more than 5 dwelling units 0 6. Q u a l i t y F a c t o r s At: a) In the presence of thermostatic control knobs on the central heating radiators 3 b) In the presence of an outdoor space (balcony, place, garden, terrace etc.) belonging exclusively to the non-self-contained living quarters: greater than 10 m² 9 from 4 to 10 m ² 3 c) In the presence of an outdoor common Use: greater than 10 m² 6 from 4 to 10 m ² 2 d) In the presence of a bicycle storage room, belonging exclusively to to the non-self-contained living quarters 6 e) In the presence of communal bicycle storage 3 10 | Policy book ANNEX I under B (continued) A F : 4 ) p o i n t s f) When the total floor area of living and sleeping area is is less than 10 m²-10 g) In extreme conditions in the residential area of the property, Which are serious nuisances-15 h) If the non-self-contained living space or the toilet is exclusively through a living or sleeping area of a person who is not part of the tenant's household belonging person is reachable-10 i) When situating the living quarters on the 5th floor or higher without an elevator- 5 j) For a window area in the (main) living area of less than 0.75 m²-10 k) When the lowest window frame of the (main) living area is more than 1.60 m above the floor is-10 l) When opposite the (largest) window of the (main) living area a façade wall lies within a distance of 5 meters-10 m) If no hot meals are allowed in the dependent living quarters and, moreover, in the common areas be prepared.-20 (1) The area of a room with a (partially) sloping or suspended ceiling is the area above which the ceiling is at least 1.50 m high. (2) Rounding up for 0.5 m² or more, down for less than 0.5 m². (3) "Kitchen" shall mean a countertop at least 1 meter in length with base cabinet, hot and cold water, placement possibility and connection for a cooking stove and placement possibility and grounded connection for a refrigerator, the whole provided with a ventilation possibility. (4) In total, no more than 50% of all positives can be deducted. 7. Protected monument - If the non-self-contained housing consists of or is part of a protected monument as referred to in Article 1(d) of the 1988 Monuments Act 50 Policy book | 1 1 Literal text of Annex 1(B), the valuation system f o r living quarters which a r e not independent living quarters 1. Area points - Area (1) of room(s) (2) and of a kitchen (2) , Belonging exclusively to the non-self-contained living space per m²( 3) 5 (see opposite, page 13, for explanation) 12 | Policy book Further exposition of the issues listed in Annex I, B, included terms Surface 1. Area of rooms and kitchens is determined in the same way as for independent living quarters viz: - The measurement is taken from wall to wall. If there is a facade, the inside of that facade (the frame) is taken. A bay window is included if it has an internal clear height of at least 1.50m. - If there is a so-called mezzanine (mezzanine floor) then the area under and/or above this mezzanine floor should be included, if the clear height is at least 1.50m. - The space under radiators is included. - The area of fixed cupboards belonging to rooms smaller than 2m² counts (the location of the door of the cupboard determines to which room the cupboard belongs). - If there is an energy meter in (a closet in) a room, the area is valued with a deduction of 30 cm x 60 cm. (30 cm x 60 cm refers to the minimum size of a meter cupboard). - For a chimney stack and/or flue (which may extend wide upwards or downwards), the area at 1.50m height is decisive. - The area occupied by down pipes (vertical pipes) is not included. - The area, occupied by ground pipes (horizontal pipes), is did c o u n t Two c o n n e c t i n g rooms are considered t o be one room if there is an opening between them that is wider than 50% of the wall in which the opening is located (see sketch). This opening must be non-closable and extend to the floor. The wall is measured in the room in which the partition is narrowest. If X > 50% of Y, then 1 and 2 are one departure. 2. Criteria for room or kitchen: - the floor must be walkable; If X < 50% of Y, then 1 and 2 are separate departures. - and the walls/walls should be made of "solid" material; - and to designate a space as a room or kitchen it should: • be at least 1.50m wide along its full length; • and have a surface area of at least 4m²; • and have a clear height of at least 2.10m over at least 50% of the measured** area. ** measured floor area means that portion of the area that has a clear height of 1.50m or more. Literal text of Annex I(B), the valuation system f o r living quarters which a r e not independent living quarters Policy book | 1 3 1. Area (continued) points - Area of heated, communal residence spaces (4) , including a live-in kitchen, of at least 15 m²per m²5 , to be divided by the number of living spaces Further exposition of the issues listed in Annex I, B, included terms 14 | Policy book 3. Per m²: first round up the area per private room to 2 decimal places and only then net the area of all private rooms and round up to whole square meters. This number of m² is multiplied by 5. E x a m p l e : room : length 3.76m x width 4.12m = 15.4912m², rounded: 1 5 4 9 m ² kitchen : length 2.95m x width 3.81m = 11.2395m², rounded: 11,24m² T o t a l : 2 6 7 3 m ² Rounding to whole m²: 27m². 27m² x 5 points = 135 points. 4. Heated communal living areas: points are also awarded to heated communal areas if these areas are individually smaller than 15 m², but in total cover at least 15 m² (e.g. communal living room of 14 m² and communal kitchen of 12 m²). Furthermore, these rooms must be intended for longer (recreational) stays, such as living room, kitchen, recreation room, etc. (not traffic areas). The method of heating must be a central heating system coupled with elements such as: radiators, floor heating or hot air outlets. - A boiler is not a heating element. - A mother furnace oF thickened pipe is considered a heating element if it is identifiable as such. - Facade stoves and gas fireplaces are considered movable property. Therefore, rooms and areas with a gable stove or gas fireplace are not valued as heated common living quarters. Remark: To be counted as common room(s), the set criteria as mentioned in item 2 on page 13 must be met. The total area (at least 15m²) should be divided by the number of residential units that may use it. The area obtained per unit is then rounded to two decimal places and added to the area of own rooms. After offsetting, rounding to whole m² takes place. This number of m² is multiplied by 5. Literal text of Annex I(B), the valuation system f o r living quarters which a r e not independent living quarters Policy book | 1 5 1. H e a t i n g o p t i o n s p o i n t s - In the presence of CV, per m2 area (1) (2) - heated room(s) and kitchen, belonging exclusively to the dependent housing 3/4 - In the presence (3) of a gas connection and also a - chimney or flue for gas stove(s) 3 - In the presence of only a serviceable chimney (4) 0 Further exposition of the issues listed in Annex I, B , included t e r m s 16 | Policy book Heating options 1. Per m2 area*: first round off the area per private room with central heating to 2 decimal places and only then round off the area of all private rooms with central heating to whole square meters. This number of m² is multiplied by 3/4. E x a m p l e : room : length 3.76m x width 4.12m = 15.4912m², rounded: 1 5 , 4 9 m ² kitchen: length 2.95m x width 3.81m = 11.2395m², rounded: 1 1 , 2 4 m ² Total: 2 6 , 7 3 m ² Rounding to whole m²: 27m²27m² x 3/4 points = 20.25 points. * For calculation of area see page 13 at item 1. 2. Belonging exclusively to the non-self-contained living space means that the area of a heated common living space (for the purpose of awarding points for heating) is therefore not counted here. 3. Presence of a gas connection and also a chimney or flue: - presence of gas connection with chimney or flue is scored only once per living space; so the rating here is a maximum of 3 points. - has already taken place as a heated departure, then no appreciation more room for a separate chimney with gas connection. 4. Usable chimney; does not include a flue through the facade behind a facade stove. Verbatim text of Annex I(B), the valuation system f o r living quarters which a r e not independent living quarters Policy book | 1 7 2. C o o k i n g f a c i l i t y i t e m s - A kitchen (1) in a separate room, belonging exclusively to the non- self-contained living space, or a kitchen in a living room, belonging exclusively to the non-self-contained living space, if it is room measures at least 25 m² (2) 20 - A kitchen (1) in a living room, belonging exclusively to the non-self- contained living space, if this room is less than 25 m², but measuring more than 15 m² (3) 10 - A kitchen (1) , belonging exclusively to the non-self-contained living space, but located in a common room 10 - A common kitchen (1) , belonging to no more than 5 housing units 4 - A common cooking facility (4) , belonging to more than 5 housing units 0 - A cooking facility that does not meet the requirements of a kitchen (1) ,. 0 Further exposition of the issues listed in Annex I, B , included t e r m s 18 | Policy book Cooking facility General c o m m e n t : Valuation of "cooking facility" is done only once per housing unit. This means that if there is a communal cooking facility in addition to one's own, valuation of the communal facility is omitted. 1. Kitchen (deFinition); shall consist of at least (minimum): a worktop of at least 1 meter in length with sink, and a base cabinet, and hot and cold water, and placement possibility, and connection for a stove, and placement possibility, and ground connection for a refrigerator, and the room where the kitchen is located must have a ventilation possibility with the outside air (movable window, ventilation duct, fan in window, etc.). 2. At least (minimum) 25 m ² : So a kitchen in a private living area of 25m² or more gets (if it meets the definition of kitchen) 20 points. A kitchen in a private living quarters of 24.99m² gets 10 points. 3. More than 15 m ² : So a kitchen in a private living quarters of 15.01m² gets (if it meets the definition of a kitchen) 10 points. 4. Cooking facility (deFinition): this also means kitchen. Thus, cooking facility must meet the definition of a kitchen (see point 1 above). Remark: - if the requirements of a kitchen are not met, a countertop with a sink is valued as a sink; - For calculation of area, see page 13, item 1.