Renting out your house in the Netherlands, how and why?
Are you planning on moving abroad for a long period of time and you want to rent out your home while you’re gone? Or, have you bought a second house as an investment or any other reason and you are thinking to rent it out?
Then the question you might ask yourself is: Where do I start in this process of renting out my property?
In this blog we try to walk you through this process and guide you with some tips and tricks on what to do on each step of the way.
Firstly, you need to decide if renting out your home is the right decision for your situation. There is so much to gain from renting out your home, especially when the housing shortage keeps increasing for the coming years.
The advantages of renting out your property
Flexibility and options for the future
In case you are uncertain about your long-term plans or if you might want to return to the property at some point. Renting allows you to keep that option open.
Potential property value appreciation
By holding onto your property and renting it out, you have the opportunity to benefit from potential future increases in property value.
Which steps to take if you decided to rent out your home
1. Which type of rental contract do you need in your situation?
At the moment you can either choose a temporary rental contract for a maximum of two years or an indefinite-term rental contract. But this is about to change. The temporary rental contracts will be largely banned, if it is up to the Dutch government. The indefinite term rental contract should become the norm again. Temporary rental is only possible in specific cases. Such as with rentals based on the Vacancy Act (‘Leegstandswet’), the target group contracts (‘doelgroepcontracten’) and the lease by its nature of short duration (holiday homes). So it’s recommended to keep yourself updated on this matter. Also, we recommend you seek professional advice or consult with a real estate agent or legal expert when entering into a rental agreement to ensure that all the necessary legal requirements are met and both parties’ rights are protected.
2. Who’s the right tenant for your property and where to find them?
It’s important to find someone with a stable income to be sure that the rent will be paid monthly. Also, you want to be sure that no illegal activities will take place on your property. That is why a background check on the tenant should be a must.
Did you know that expats in the Netherlands are a valuable group to consider as a tenant for your rental property? Why expats are a good choice to consider as tenant, is that they often offer a higher rental income, possess financial stability, and tend to have longer tenancy durations. These are the reasons why you should consider renting out your home to expats. It’s recommended that you seek assistance from a real estate specialist to ensure that this process runs smoothly.
3. How much rent should you be asking?
Determining the exact rental price for your home depends on various factors such as size, energy label, amenities such as kitchen and bathroom, private outdoor space(s) and property value (‘WOZ waarde’).. You’ll get point credits based on these criteria. This is called your ‘WWS points’ (woningwaarderingsstelsel). There are various websites where you can fill in your information to calculate your WWS points. Also, your real estate agency can give you a clear estimate of how much rent to ask for your property.
TOSS can help you rent out your home stress-free
Hopefully this blog could help you in your decision making and if you are considering finding a professional to help you in this matter, we at TOSS have our in-house real estate agents and we have a large network to make renting out your house a stress-free step to take. Our real estate agents are specialists in the Dutch housing market and are familiar with the Dutch laws and regulations. Also, TOSS has a large number of connections to find the right tenant for your property. Would you like to know more about our services or would you like us to assist you, please do not hesitate to contact us.