Thinking of renting out your house in the Netherlands?
There are many different things to be aware of when you do this and it’s important to be keyed up (pun intended) before you make the decision. Like…
1. Should your rent out your property or should you sell it?
Firstly, you need to work out whether you really want to rent it out and work out the pros and cons to this. If you’re planning on returning to the property at some point or another, then, of course, selling it is out of the question.
Otherwise, it’s a good time to sell your house in the Netherlands. Properties are selling fast and the prices are higher.
However, the longer you stick with your house, the more it could increase in value, so it’s all about picking the right time.
Meanwhile, renting out your property can be expensive if it has a lot of issues (and you have to keep fixing them), however, renting is a great way to earn passive income. Decisions, decisions!
2. Tax when renting your property
The whole tax thing can get pretty complicated when renting your property out. In short, when you rent your property out in the Netherlands, then the value of the property is taxed (this is generally around 30%).
However, this all varies so much from property to property and it all depends if you are still living in the Netherlands or not, so it’s impossible to give exact figures.
3. Should you use a Dutch rental agency?
To make your life 10 times easier, it may be worth renting it through a Dutch rental agency.
One of the bad points of this is of course that it will cost more. However, Dutch rental agencies know what they’re doing.
If this is the first time you have rented out a property, then there are some important things that you might miss — especially when it comes to knowing the law (very important)!
A rental agency can also help you set the price of your property. They know the market well and they will likely know what your property is worth better than you can.
They’ll also have good contacts to find you tenants, which on your own, you likely won’t have.
This is especially handy if you are renting because you are moving abroad because a rental agency can deal with most of the admin work, any repairs, and any other issues that may occur during the duration of the tenancy.
4. Finding the perfect tenant
The best way to go about this is is again, to consider using a Dutch rental agency, as they will be able to do background checks on the tenant to see if they have a track record of not paying their rent and also to see if they are able to afford and pay for the rent.
It’s hard for both Dutch people and internationals to find housing and depending on the landlord, they ultimately decide who they are willing to let to.
You’ll ideally want to find someone who:
- Will take care of your house
- Can pay the rent on time
- Is reliable and won’t skip out on the contract
5. The contract length you might like
There are two different types of contracts that you can offer your tenants: a fixed or an indefinite term.
Fixed means that you will give the tenant an agreed end date.
If you opt for an indefinite term, this means that after the end of the original fixed term, they are able to stay for an indefinite period.
If the contract needs to be terminated, then this cannot be done on a fixed-term contract until the contract is up.
However, on an indefinite contract, it can be terminated with sufficient notice.
Your tenant will have the freedom to terminate without reason, however, you will have to give a valid reason (and according to Dutch law only five reasons will allow you to do that).
The only exception to this is if the fixed-term contract was for less than two years.
Again, this all depends on numerous factors and the law is constantly altering to tackle any housing issues.
6. Future maintenance costs
Maintenance of the property will mainly lay on your shoulders when you rent your home. This needs to be made clear to both yourself and the tenant.
You also need to be aware that some maintenance costs will not be cheap and this is something you’re going to have to sort if something big happens.
Generally the tenant is responsible for the painting of the inside of the property etc, however, if they make serious amendments without your permission, then you have the power to say that it needs to restored to how it was when they first moved in.
Be aware of your responsibilities and the potential costs, always.
7. Inspecting your property as a landlord
When you rent out your property, chances are that you’ll want to inspect the property at least once during the tenancy.
You must not turn up uninvited as this is against the law. You must let the tenant know in advance, this is even true if you suspect that illegal activity is happening in the property (for which you will be responsible for).
The best times to inspect is at the start of the tenancy (so that you know how the property is at the start and then of course when the tenant leaves to ensure that everything is in good working order.
Take photos and this way it is easier to sort deposit issues if you have proof that the tenant has damaged the property.
Note: This does not include normal wear and tear! (Don’t be one of those landlords)
Have you ever considered renting out your house in the Netherlands? Let us know in the comments!
Feature Image: belchonok/Depositphotos
Editor’s Note: This article was originally published in February 2019, but was fully updated in December 2021 to bring you the most up-to-date information.