Relocation allowance in case of a renovation

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Netherlands Enterprise Agency, RVO
Netherlands Enterprise Agency, RVO

Do you let a house in the Netherlands and do you need to renovate or demolish it? And your tenant cannot stay in the property? As the owner of the property, you may have to pay a relocation allowance to your tenant. The relocation allowance is a contribution towards the costs of relocation and refurbishment.

When do you have to pay a relocation allowance?

You must pay a relocation allowance to your tenant if:

  • the tenant has to move out because you are going to demolish or renovate the property
  • you plan to implement a zoning plan and terminate the rental contract

Your tenant has the right to a relocation allowance only once. The allowance is also for moving back after renovation or to new a new building.

You do not have to pay a relocation allowance if:

  • you carry out major maintenance
  • the tenant can continue to live in the house during renovation
  • the tenant is given temporary furnished accommodation
  • you do not extend your tenant’s temporary rental contract

Allowance in kind

You can also offer your tenant another type of help instead of a relocation allowance. For example, you can offer to paint the new house or arrange the move. Your tenant must agree to your offer. If the tenant does not agree, you still have to pay the statutory allowance.

How much relocation allowance do you have to pay?

Every year on 1 March, the government sets the amount of the relocation allowance (in Dutch) for an independent house (own front door, toilet, and kitchen), trailer and pitch. Your tenant can apply for a relocation allowance up to 5 years after the move.

For non-independent housing (your tenant shares the front door, toilet, or kitchen with others), no legal minimum amount applies. You need to agree to an amount with your tenant.

Does the tenant receive an amount from the municipality in addition to the relocation allowance? Then you can deduct that amount from the relocation allowance.

Compensation in case of damage

Has your tenant suffered damage not covered by the relocation allowance? Then you may have to pay a compensation to your tenant. This amount is in addition to the relocation allowance.

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Questions relating to this article?

Please contact theNetherlands Enterprise Agency, RVO