A Mandatory Allowance for Forced Moves
A 'tenant relocation grant' is a very real and legally protected right in the Netherlands, known as the verhuiskostenvergoeding. This is not a subsidy from the government, but a mandatory allowance that the landlord must pay to a tenant if the tenant is required to move because of a planned demolition (sloop) or a large-scale, essential renovation (dringende werkzaamheden) of the property. The law recognizes that this is an involuntary move forced upon the tenant for the landlord's benefit, and this allowance is intended to contribute towards the significant costs and disruption of finding and moving to a new home. This is a crucial right that protects tenants from being displaced without compensation.
When Does This Right Apply?
A tenant is entitled to this allowance if the renovation is so extensive that it cannot be carried out while they are living in the home. This does not apply to regular maintenance (like painting or repairing a boiler) but to major projects like replacing the foundation, completely gutting the interior, or large-scale energy efficiency upgrades that require the property to be vacated. The right applies whether the tenant has to move permanently or just temporarily. The landlord must present a reasonable renovation proposal, and if the tenant does not agree, the landlord must get a court's permission to proceed.
The Amount and Process
The verhuiskostenvergoeding is a minimum amount set by the government, which is indexed annually. As of August 2025, this minimum amount is over €7,100. This is a fixed, lump sum; it is not a reimbursement of actual moving costs. The tenant is entitled to this minimum amount regardless of whether their actual moving costs were higher or lower. The landlord must make the offer of this allowance a part of their formal renovation proposal. A tenant should never agree to move for a renovation without having a written agreement that includes the payment of this mandatory allowance. It is a non-negotiable part of their legal rights.
