From E, F or G to energy label D: what landlords need to know now

From 1 January 2029, rental properties with a poor energy label will, in principle, be required to meet at least energy label D. That may still seem a long way off, but the issue is already relevant for landlords: making properties more sustainable takes time, and implementation is not always entirely within the landlord’s control. This may involve not only municipalities and contractors, but also the required cooperation of tenants or decision-making within an owners’ association (VvE).

Where do things stand now?

At the end of 2025, an amendment to the Dutch Buildings Decree for the Living Environment (Besluit bouwwerken leefomgeving, Bbl) was published for internet consultation. It introduces a minimum energy performance requirement for existing rental properties equivalent to energy label D (maximum 290 kWh/m² per year). On 10 July 2026, the draft decree was submitted to the House of Representatives and the Senate as part of the parliamentary scrutiny procedure. The Council of State will subsequently issue its advice. The amendment is expected to be incorporated into the Bbl definitively in 2027.

The main rule

An owner of a rental property with energy label E, F or G must ensure that, from 1 January 2029, the property meets the new minimum energy performance requirement. The draft decree does not prescribe specific measures: landlords retain flexibility in how they achieve the required level. The obligation applies exclusively to the rental housing stock. Owner-occupiers will not be subject to this energy label requirement.

The draft decree provides for several exemptions, including listed buildings, buildings used temporarily, detached buildings of less than 50 m², and buildings designated for demolition.

Temporary use is not the same as a temporary tenancy agreement. The exemption concerns the period for which the building itself is used: a building that is used for no more than two years, such as temporary accommodation during redevelopment or temporary replacement housing. An ordinary rental property let under a temporary tenancy agreement does not fall within this exemption: the building remains a permanent rental property, while only the agreement with that particular tenant is for a fixed term. For the energy label requirement, it is the building, not the current tenancy agreement, that matters.

Rental properties that form part of a mixed owners’ association (VvE) are subject to a specific qualification: landlords have an obligation to make reasonable efforts rather than an obligation to achieve a specific result. Making an apartment more sustainable often requires alterations to common parts of the building, for which a positive resolution of the owners’ meeting is required. If the VvE does not adopt such a resolution, the obligation for the landlord-owner lapses. The landlord must therefore demonstrably make efforts to secure support within the VvE for the sustainability measures, but will not be held responsible for an outcome beyond their control.

In short, a property portfolio cannot simply be assessed on the basis of energy labels alone. For each property, it must be determined whether an exemption applies.

The role of the tenant

Sustainability measures usually require access to the property and therefore the tenant’s cooperation. Article 7:220 of the Dutch Civil Code provides the relevant framework and distinguishes between urgent works and renovation.

Urgent works (Article 7:220(1) of the Dutch Civil Code) are works that cannot be postponed without causing disadvantage. This does not only include urgent repairs, but may also include periodic major maintenance or works carried out as part of a larger project. If one property within a larger residential complex is left out, this may immediately create a disadvantage. Tenants are required to allow urgent works to be carried out. They may, however, be entitled to compensation for damages, for example.

Renovation (Article 7:220(2) of the Dutch Civil Code) concerns works that improve the tenant’s enjoyment of the property. Sustainability measures will generally fall within this category, as they improve living comfort and often reduce costs for the tenant. Renovation requires a reasonable written proposal. This proposal must be specific and include information on the nature and necessity of the works, the schedule, the cooperation required from the tenant and the financial consequences for the tenant. For a complex consisting of ten or more residential units, a special rule applies: if 70% or more of the tenants agree, the proposal is presumed to be reasonable. Tenants who do not agree have eight weeks to ask the court to assess the reasonableness of the proposal. If they do not do so within that period, the reasonableness of the proposal is established.

If relocation is necessary because of the renovation works, an additional obligation applies: the landlord must contribute towards the tenant’s moving and furnishing costs. For self-contained residential accommodation, a statutory minimum amount applies, which is indexed annually. Since 28 February 2026, this minimum contribution has been €7,926. The parties cannot derogate from this minimum to the tenant’s detriment, although they may agree on a higher amount.

If a tenant nevertheless refuses to cooperate, the landlord can seek a court order compelling the tenant to do so. Recent case law shows that courts, either in proceedings on the merits or, where there is sufficient urgency, in summary proceedings, regularly order tenants to allow sustainability works to be carried out. If necessary, this may include temporary or partial vacation of the property and the imposition of a penalty payment.

No ban on renting, but a risk of enforcement

A property with energy label E, F or G will not automatically become unlawful to rent: there will be no ban on letting such properties. However, the requirement is not without consequences. Supervision and enforcement will be the responsibility of the municipality, which may take enforcement action in the event of non-compliance, for example by issuing an enforcement order, applying administrative enforcement measures or imposing an order subject to periodic penalty payments.

Who pays for the sustainability measures?

A public-law obligation to improve a property does not automatically mean that the investment can be fully recovered through the rent. In an existing tenancy agreement, rent can generally only be increased to a limited extent. In parallel with the amendment to the Bbl, the Dutch government is therefore exploring whether the rental rules in the Dutch Civil Code should be amended.

Four action points for now

1. Review the property portfolio for properties with energy labels E, F and G, and assess for each property whether an exemption may apply. Also consider the nature of the works: are they urgent works, renovation, or a combination of both?

2. Stay in contact with tenants, keep them informed and prepare a specific written renovation proposal in good time.

3. Build support, engage with tenants who have doubts and anticipate possible refusals by ensuring that the file is thoroughly prepared.

4. Start legal proceedings in good time where necessary to compel tenants who refuse to cooperate.

2029 may seem a long way off. Landlords who map out the legal route towards energy label D now can avoid finding that the deadline arrives sooner than expected.