Amsterdam is set to implement a new ordinance requiring landlords renting out mid-market properties to obtain a permit, effective July 1. This scheme aims to regulate the rental market and ensure that affordable housing is accessible to individuals and families with mid-level incomes.

The new permit system will allow the city to maintain a register of landlords operating in the mid-market segment and verify that tenants’ income aligns with the intended affordability of the properties. This measure seeks to address the issue of “crooked living,” where individuals with higher incomes occupy housing meant for those with lower earnings.

Under the new rules, single occupants earning more than €81,633 per year and families with incomes exceeding €89,821 per year will not be eligible for mid-level rentals. According to Zita Pels, head of housing, this initiative will ensure that houses are allocated to households with mid-level incomes, who often struggle to find suitable and affordable housing in the city. Mid-level rentals are defined as properties with monthly rents ranging from €800 to just under €1,185.

Gert Jan Bakker, a consultant at tenant rights’ organization Woon, stated that the new ruling is welcomed by renters groups and will ensure that affordable housing is made available to people with the “correct incomes”. The licensing system in Amsterdam is considered a pioneering step in addressing improper or exploitative rental practices.

Landlords of mid-level rental properties will be required to apply for a permit starting July 1, with the city aiming to issue permits within two weeks of application. While permits can be given retrospectively initially with a bedding-in period for the new ordinance, properties can only be rented after a permit has been granted.