In the Netherlands, a valuation system (also called point system) for rental housing applies to determine the quality of the rental property. Points are awarded primarily based on size, quality and the energy label of the respective property.
If the initial rent (of rent agreements after July 1st, 1994) is above the price liberalization boundary (this is equivalent to the maximum rent limit of the Law on Housing Benefit), the rent protection for tenants is largely inapplicable. As of 1 January 2014, the limit is set at €681.02. This renting price may be agreed upon if the property has 143 or more points.
In this situation, the parties may agree independently on the (basic) rent. There must be a split between the rent and (the advance) payment on monthly VVE remittance (service costs). The service costs should be charged based on the actual costs made annually by the landlord. The rent may be increased once every twelve months. Upon reaching the liberalization boundary, the energy label plays a major role (for more information, see ‘energy label’).