The rental agreement specifies which method is used to increase the rent, as several options are possible.
In the case of social housing (lower segment), the Dutch government sets the maximum percentage by which the rent may be increased.
For mid-range rentals (middle segment), the government also sets a maximum percentage—based on the average development of collective labour agreement (CAO) wages. The method stated in the rental agreement determines how the rent increase is calculated, but it may never exceed this legal maximum. Interhouse rental agreements typically use the maximum percentage as the standard increase.
In the private rental sector (upper segment), a similar approach applies, although the way the increase is calculated differs. Interhouse rental agreements usually apply the maximum percentage as the default increase here as well.
Also watch this video.
