Category Archives: Dutch Housing Law

Dutch Home Owners Association gets tougher rules

New rules for the Dutch Home Owner Association are meant to improve the operation or the Netherlands HOA.

Dutch Home Owners Association

Home Owners Association in the Netherlands

The Dutch Owners’ Association or VvE ensures the property is well maintained and insured and deals with communal expenses. If you buy a apartment Netherlands you are automatically a member of this Owners Association and bound to the applicable rules (reglement). The Association of Owners in the Netherlands is responsible for the communal parts of the building like the halls, roof, pipes, walls, stairs, etc. You pay a contribution to the VvE for maintenance, insurance, communal expenses.

New rules apply as per January 1 2018 on the Dutch Owners Association

  • a minimum amount for large scale maintenance should be reserved by the VvE in a separate account
  • the VvE should have a large scale maintenance plan
  • large scale maintenance plan should stipulate the amount to be reserved
  • works to bed and should be budgeted and planned to be done within 10 years
  • the VvE can obtain an loan for maintenance work.

Home Owners Association can obtain a loan

The VvE can obtain a bank loan or a loan with a special Fund for large scale maintenance works. The owner of an apartment is only liable for his share in the loan. When the house is sold then the debt  and/or liability of the home owner will be transferred to the new  owner. The notary who deals with transfer of property in the Netherlands will specify this in the deed of transfer.

Manager of Dutch Association of Owners 

The manager (beheerder) of the owners association will conduct the management over the communal sections and the communal property. Decisions of the owners association are taken in meetings, the assembly of the VvE, to be conducted according to the applicable rules. The meetings will take place at least within six months after the end of the financial year. Assemblies can also be arranged as often as necessary. Decisions by the meeting of owners are taken by majority vote. For specific decisions, like changing the deed of the division (splitsingsakte), or not reserving funds for maintenance,  4/5 majority is necessary. Also a separate set of HOA rules may apply (huishoudelijk reglement).

 

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Short term rent restrictions unlawful?

Dutch Airbnb rentals get tough treatment

Short-stay rentals typically appear to be regulated at a municipal/regional level and thus differing regulations can be seen within a given country. The serious increase of short stay rental activity  in recent years, cities around the world are looking at ways to reform their regulations or have already taken actions to do so.

short stay rental

Scruffy Dutch law discourages landlords

Because the traditional regulatory frameworks were largely designed without these new additions to the short-term accommodation market in mind, there is a danger that they will be ill-adapted to application to Airbnb-style providers or that such providers may entirely fall outside of the scope of the regulatory framework. As a lawyer focused on human rights article 1 EP (European Protocol) comes in the picture, the right to property, in particular the right to derive profit from property recognised by the the European Court in the case Hutten-Czapska vs Poland.

A more social consideration is also used by the Court:
Property, including privately owned property, has also a social function which, given the appropriate circumstances, must be put into the equation to determine whether the fair balance has been struck between the demands of the general interest of the community and the individual’s fundamental rights.

Ban on airnbnb rentals unjusified

In my Dutch law firm we notice a increasing call from property owners that do not accept de local restrictions e.g. in the City of Amsterdam.  To my opinion the balance has gone to far in the protection mode and the basic right of the landlord to rent including short stay rent is infringed.

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Filed under Dutch Contract, Dutch Housing Law, Dutch lawfirm, Regulatory Compliance Netherlands