- Rental laws do not apply to an expat, but only Dutch citizens. This is not true. The law applies to everyone, which includes expats. A foreigner can call upon the same laws as a Dutch lessee.
- By renting out the property furnished, I will be able to ask for a lot more rent, which means I can rent out a property below 146 points, at a deregulated rate. This is not true. You need to comply with the point system. New furniture can be deprecated over a period of at most 60 months. This means that if you rent out a newly furnished property, where the furniture has a purchase value of for instance € 10.000, you are allowed to charge an additional monthly amount of up to € 167,-. When dealing with old furniture, the amount will become a lot lower as the replacement value of the furniture will be used in the calculation. When renting out a property on the private market, you need to make a clear split between the rent price and the compensation for providing furniture (and other services and goods). You should not put the rental amount for furniture at a too high level. Service costs and costs for rented furniture are price protected and the lessee will be able to reclaim the amount that is paid in excess of the amounts as per applicable legislation.
- When renting out a property with furniture, I am allowed to rent out this property on a temporary basis. This is not true. Renting out furnished property has nothing to do with being allowed to rent out a property on a temporary basis.
- I am allowed to use the service costs to increase the rent significantly. This is not true. Service costs, which contain for instance the cleaning of the stairwells or gas, water and electricity charges, always need to be estimated realistically and need to be settled annually, based on the actually incurred costs. As a lessor your are obliged to provide the lessee with an overview of these costs. You are legally not allowed to make any profit on charging for service costs.
What you should not forget.
- Many private properties are encumbered with a mortgage. Most mortgage agreement contain a clause that prohibits you from renting out the property without the (written) consent of the mortgage provider. We do not check with the mortgage provider to verify whether or not consent has been given. It’s your own responsibility to obtain permission from your mortgage provider before commencing the rent of a property.
- You are required to inform your insurance company. Make sure that the insurance company that provides you with a household insurance, is aware of the fact that you will be (temporarily) renting out your property.
Amsterdam Rental Brokers will find a suitable lessee for your vacant property!
Have you already moved into your new home and is your old home still for sale? Opt to rent out your home temporarily, with a B&W permit, based on the Dutch vacancy laws.
This permit can be obtained if you are for instance, not able to sell your old home. The property needs to be rented out for a period of at least 6 months. A lessee cannot make use of lessee protection in case of temporary rent based on Vacancy laws. The rental agreement needs to comply with all applicable rules and regulations. All regulations regarding time periods need to be taken into consideration.
The lessor is allowed to determine the rent amount himself in case of property that is up for sale. Has the permit been granted before the first of July, 2013? In that case the maximal rent amount mentioned on the permit applies. Municipalities are not allowed to impose additional requirements to the temporary rent of property which is up for sales. The permit remains valid for 5 years. An already issued permit does not require a renewal, but will be valid for another 5 years. You can request the municipality to confirm this in writing. Private individuals are not allowed to rent out more than two properties up for sale, at the same time. The property in question needs to either be a newly build property which has never been inhabited, a property which has been inhabited by the owner during the period of 12 months before the property was vacated or a property that has been rented out for a maximum of 3 years (entirely or in part) over the last ten years before it became vacant.
If you would like to learn more about the Vacancy laws, then please let us know or visit the following government site: www.rijksoverheid.nl/tijdelijk-verhuren/
An important and often underestimated subject is insurance for property which will be rented out. The owner must make sure that the property is insured against fire and damage due to outside causes (home insurance policy). Are you a member of an Owners’ Association? Then most likely this insurance is taken care of by your Owners’ Association. Most of the time the insurance policy also includes a “rent clause”. This means that the insurance will remain valid whenever you rent out the property. Please make sure this clause is present and get in contact with your insurance company if you are not sure. No Owners’ Association? Read your insurance policy carefully and take out an additional or new insurance if need be. In case of renting out furnished property, you will have to deal with an “inventory insurance”.
This is often confused with a household insurance. Many insurance companies will consider the household insurance invalid whenever the property is rented out, as the insurance is on a name basis. Often the insurance can be converted to an inventory insurance, which will also apply when renting out your property, without any difficulty. We advise you to make sure of the status of your inventory insurance upfront, to prevent any unpleasant surprises. A lessee has to insure their inventory themselves.
We advise our lessors to have a point calculation carried out, before renting out property. This allows you to better analyze the risks and provides insight into whether you might want to improve the property. Improving your property might allow you to offer your property on the private market and ask for a deregulated rent amount. We have had good experiences working with the company mentioned below: Duresta (Also for an energy label)
Address: Ukkelstraat 2a 5628 TE Eindhoven 085 - 40 111 66 firstname.lastname@example.org
Rent assessment committee and review
The rent assessment is an independent organization that settles disputes between lessor and lessee, on for instance cases of rent increases, rent decreases or an annual settlement of service costs related to none deregulated rent prices. The rent assessment committee also settles disputes related to possible defects and rent decreases (for the period in which the defects are not yet resolved). Lessors and lessees can contact the committee about all their questions regarding the rented property.
Review by the committee
In principle, one has the right to agree on any rental price together with the lessee. However, the lessee has the right to request the committee to review the agreed rental price, within six months after concluding an agreement. If the committee finds the rental price to be too high (based on the total of property points), then the rental price needs to be adjusted downwards, to the maximal allowed rental price. The lessor is required to pay back the amount paid in excess of the maximal allowed rental price. A decision made by the committee can be appealed against, at the cantonal court. The cantonal court is however also bound by the property point system. The damage incurred when an initial renting price is too high, can amount to thousands of euros. This does not take into consideration whether or not a housing permit is required. After six months of renting a property to the same lessee, under deregulated rental prices, the rental price will be considered deregulated and there a no longer any risks related to the renting price to the lessor (however, you might still run some risk when it comes to the housing permit.). This only applies if you calculated the rental price using the correct methods and you have not agreed on an all-in rental price. We offer the expertise required to correctly handle these proceedings.