A Forced Move, A Mandated Fee
The verhuiskostenvergoeding, or relocation cost allowance, is a specific and significant financial protection for tenants in the Netherlands. It is not a general compensation for moving; rather, it's a legally required payment from a landlord under a very specific set of circumstances: when the landlord must terminate an indefinite-term rental contract because the property is slated for demolition or requires such extensive, urgent renovations that the tenant cannot continue to live there during the work. This allowance is not a kind gesture or a point of negotiation from the landlord; it is a mandatory, non-negotiable legal obligation intended to partially compensate the tenant for the substantial financial and logistical turmoil of being forced to find and move into a new home. Many tenants are unaware this right exists, and landlords may not always be forthcoming about their obligation to pay it.
When Does This Right Apply?
The conditions for receiving the relocation allowance are precise and narrowly defined, and tenants should understand that it does not apply to most lease terminations. The allowance is only applicable if all of the following conditions are met:
- Contract Type: The tenant must have an indefinite-term rental contract (
contract voor onbepaalde tijd). It does not apply to the natural expiration of a temporary or fixed-term contract. - Landlord's Initiative: The move must be necessary because the landlord is terminating the lease. It does not apply if the tenant decides to move for their own reasons.
- Specific Grounds for Termination: The landlord's reason for termination must be either demolition (
sloop) or urgent, large-scale renovation (dringende werkzaamheden). The renovation must be so comprehensive that it's impossible for the tenant to remain in the home. This is far more than routine maintenance, re-painting, or a simple kitchen upgrade. The landlord must demonstrate that the renovation cannot be carried out while the tenant is still living in the property.
If these conditions are met, the tenant is entitled to the allowance. This applies whether the tenant formally agrees to the lease termination or if the landlord has to get a court order to proceed.
The Amount and Process
The Dutch government sets a minimum amount for the relocation cost allowance, which is indexed and adjusted annually. As of 2024, this minimum was over €7,000. This is a fixed, lump sum intended to cover a wide range of moving-related costs, such as hiring a moving company, purchasing new flooring or curtains for the new home, and connection fees for utilities. It's important to note that this is a minimum entitlement. In large-scale social housing renovation projects, tenant associations and social plans (sociaal statuut) often negotiate for higher allowances or additional support, such as the right to return to the renovated property. The process typically begins with the landlord presenting a formal, well-substantiated proposal to the tenant. This proposal must detail the planned works and include the offer of the allowance. If the tenant does not agree to the termination, the landlord must petition the court, which will then rule on whether the renovation is truly 'urgent' and necessary, and if so, will grant the termination and order the landlord to pay the fee. Any tenant facing such a proposal should immediately seek legal advice from organizations like the Woonbond or a juridisch loket (legal aid service) to ensure their rights are fully protected.
