Frequent misconceptions

  1. 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.
  2. 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.
  3. 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.
  4. 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.

  1. 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.
  2. 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.
  1. Verify in advance whether or not you require any approval from your Owners’ Association or Cooperative Association.
  2. Ask your tax advisor about the fiscal consequences of renting out your property.

Vacancy laws

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: https://www.rijksoverheid.nl/onderwerpen/koopwoning/inhoud/woning-tijdelijk-verhuren

Insurance

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.

Point report

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 info@duresta.nl

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. Source: www.huurcommissie.nl 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.  

Additional rent for monuments

You can calculate the maximal renting prices of your monument property, by using the point system. Lessors of monument properties can increase this maximal renting price with a premium.

A monument property is a property located in a national monument or a property located in a protected cityscape. The point system for properties (either with or without shared facilities) determines the height of the maximal rental price for your monument property.

You can check the points and maximal rental price of your monument property, using the rental price check of the Rent assessment commission.

Premium on the maximal rental price for a monument

The lessor of a monument is allowed to add a premium to the maximal rental price. This is because monuments are cause for additional (maintenance) costs to the lessor.

As of the first of July, 2013, the premium amounts to 50 points for property which is considered a national monument. In case of property build before 1945, which is part of a protected cityscape, the premium amounts to 15% of the maximal rental price.

You can find more information on the following government site: https://www.rijksoverheid.nl/onderwerpen/huurwoning/inhoud/puntensysteem-huurwoning/puntensysteem-en-monumentenwoningen

Extra points based on the energy label

The energy performance contributes to the point total of property without shared facilities. As of the first of January, 2015, a new energy label is used and the Energy-Index determines the energy performance. The Energy-Index is shown as an amount. A lower Energy-Index will give your more rental points. A lessor is required to inform new lessees about the energy performance of the property (this is not always required when it comes to existing lessees). If you do not inform the future lessees, you can be fined with a penalty of 450,- EU. The property will be awarded with more points, depending on the energy performance rating. The more energy efficient the property is, the more points it will be awarded. Amsterdam Rental Brokers advises you to have a officially recognized advisor carry out the determination of the energy label, before renting out the property. You can contact the following company to have the inspection carried out: Duresta; info@duresta.nl, 085 4011166 For more information about the energy label and energy performance, we would like to point you to the following government website: https://www.rijksoverheid.nl/onderwerpen/huurwoning/inhoud/puntensysteem-huurwoning/puntensysteem-en-energielabel  

The point system

Points determine the maximal rental price The point system is used to represent the quality of rental property via points. The point system is also called the property valuation system. Every part of the property, such as living space and sanitation, is valued in points. Special rules apply to monuments and sheltered accommodations. The total of all points for any property will in turn determine the maximum rental price. The point calculation and maximal rent are adjusted every year. You can calculated the point total and the maximal rental price for your property via the rental price check of the Rent assessment commission: https://www.huurcommissie.nl/onderwerpen/huurprijs-en-punten/huurprijscheck-en-puntentelling/ When in doubt about whether or not a property can be rented out in the private sector (at least 146 points), we advise you to carry out a point count including energy label. This way you will never be faced with unpleasant surprises. We usually work together with Duresta, a company that helps us with the point count in combination with an energy label. You can reach them on: 085 4011166, info@duresta.nl. No point system for deregulated renting contracts The point system does not apply to deregulated rental contracts. These contracts are part of the private sector and the monthly rent as of the date the contract comes into effect, is above the deregulation limit. The deregulation limit in 2015 is € 710,68. This means that any rental contract coming into effect in 2015, with an initial rental price of more than € 710,68, is considered to be deregulated. In this case, the lessor and lessee are free to determine the rental price themselves. There is no maximum rental price. New system for the determination of maximal rental prices As of the first of October, 2015, the point system has been changed. The WOZ value of the property (property value) is now part of the calculation of the total point amount. The environment, burdensome situation (such as noise nuisance) and the type of property (single family home, flat) are no longer part of the calculation. Scarcity points no longer apply. These changes only apply to properties without shared facilities (and also apply to existing rental agreements). You can find more information about the point system at the following government website: https://www.rijksoverheid.nl/onderwerpen/huurwoning/inhoud/puntensysteem-huurwoning/puntensysteem-en-woz  

All-in rent is prohibited

Be aware: Never rent out any property based on an “all-in” rate. Even if the property is awarded with more than 146 points, the lessee can request the rent assessment commission to split up the rent amount in (bare-bones) rent and services costs. The rent commission is then required to set the (bare-bones) rental price at 55% of the maximal rental price for the property, even if the property is awarded more than 146 points and can be rented out for more than € 710,68. This reduction in rent price can never be made up for.

 

Sales of the rented out property

The rule is that a sale will not end the rent. The new owner is bound to the existing rental agreement. Always pay attention to whether or not you’re required to provide the rented out property in an empty state, when you are selling the property. Even if the lessee agreed to comply with an empty delivery of the property in case of sale, he can still make things very complicated for you. Always make sure that the lessee (and his or her partner) sign a vacation letter, wherein they declare to leave the property before a certain date, before signing the sale agreement of your property. It’s even more important to verify whether or not the lessee can be legally forced to vacate the property, before deciding to actually rent out said property.