Local authorities can use their housing ordinance to make various permits compulsory in order to regulate the use of living space. Examples include conversion permits, housing formation permits and division permits. These permit requirements are intended to ensure a balanced distribution of living space, guarantee safety and quality of life, and prevent overcrowding or unauthorised letting, for example.

The rules for room rental and house sharing vary from municipality to municipality. In most cases, a permit is required if you rent out rooms to more than a certain number of people. In Amsterdam, for example, a permit is required if you rent out rooms to more than three residents who do not form a family. Therefore, always check which specific rules and permit requirements apply in your own municipality.

In the event of a breach of housing regulations, the local authority can take enforcement action, for example by imposing an order subject to a penalty or an administrative fine. This often happens in cases of illegal room rental, exceeding the permitted number of residents or using a property for unauthorised purposes. Legal remedies are always available against an enforcement decision: both tenants and landlords can lodge an objection and then, if necessary, lodge an appeal.

If you have received such a decision from the local authority, the decision will often state what steps you can take. There are usually three options: end the violation, legalise the situation (by means of a permit) or lodge an objection to the order. The latter option is followed by a procedure in which you can challenge the order. It is important to act quickly, as objections must be lodged within a period of six weeks.

If the rental is in violation of the Housing Act, the local authority can issue an administrative coercive measure to compel you to stop the violation. You may then be forced to evict a resident in order to stop the violation.

A housing permit is usually required when the property is subject to the municipality's scarcity rules, such as social housing or certain mid-range rental properties. Municipalities use these permits to promote a fair distribution of living space. Conditions such as an income limit and registration as a residence seeker often apply. Renting without a housing permit, when it is mandatory, is not permitted.