Annual Lease (12-Month Contract)
An annual lease is a fixed-term rental contract for a duration of exactly one year, a common but often inflexible arrangement for tenants in the Dutch market.
A Single Price for Everything
An 'all-inclusive lease' or all-in huurcontract is a rental agreement where the tenant pays a single, unitemized price to the landlord. This single price includes not only the basic rent for the property (kale huur) but also all other costs, such as service charges (servicekosten) and utilities like gas, water, electricity, and internet. While this might seem simple and convenient, this type of contract is strongly discouraged by Dutch law and is almost always a very bad deal for the tenant. The lack of separation between the basic rent and the service/utility costs makes the contract opaque and undermines several key tenant rights.
Why It's a Bad Deal for Tenants
The opacity of an all-in contract creates three major problems for a tenant: 1. Inability to Check the Rent Price: Without a specified basic rent, it is impossible for a tenant to use the official points system (woningwaarderingsstelsel) to check if the rent is fair or to have it assessed by the Huurcommissie (Rent Tribunal). 2. No Annual Settlement of Costs: The landlord is not required to provide an annual settlement (eindafrekening) of the actual utility and service costs. This means the tenant has no way of knowing if they are being overcharged, and the landlord could be making a significant hidden profit on these costs. 3. Ineligibility for Rent Allowance: A tenant with an all-in contract cannot apply for the government's rent allowance (huurtoeslag), as the application requires a specified basic rent amount.
The Tenant's Right to Split the Rent
Recognizing how disadvantageous these contracts are, Dutch law provides a powerful tool for tenants. A tenant with an all-in lease has the right, at any point during their tenancy, to submit a request to the Huurcommissie to have the price officially split. The Huurcommissie will analyze the property and the costs and then issue a binding ruling that separates the single price into a basic rent component and an advance payment for service/utility costs. In doing so, they often use a default formula (e.g., setting the basic rent at 55% of the all-in price) that is highly favorable to the tenant. This not only creates transparency but can also lead to a significant reduction in the legal basic rent.
