What you need to consider while renting out your property in Amsterdam

Publication: 11-04-2019

Maybe you’ve got an apartment, studio, penthouse or residence which you would like to rent out to an expat? Do you want to know what you need to take care of and what you should take into account? This blog series will give you insights of everything you need to keep in mind when you’re renting out a place in Amsterdam. This week we will talk about a few things you need to consider before you decide to rent out your property in Amsterdam.

As soon as you consider to rent out your house, you must know that this will be for a period of minimum six months. If you only want to rent out for a couple of weeks or even a couple of months, it’s advised to check out other options, like AirBnB. You can read how that works here.

Scoring

Maybe you’ve heard someone mention a certain scoring system that determines the rent as long as your house is available in the free sector. By using the rental price check, you can make a good estimate of the maximum rental price or the number of points of your property. The Rental Committee itself determines the number of points and the maximum rent after its own investigation. Use this tool as an indication only.

Please note that for a house with a maximum of 141 points, a maximum rental price must be applied. Houses that have 142 points or more, the landlords themselves may determine the maximum rental price. Individual rooms always have to deal with maximum rents, so there is no free sector here.

The number of points that a house receives is partly determined by a number of factors. Think of the square meters of living space, the WOZ value, energy performances and a liberalization limit.

Rental price

As soon as the rent has been determined on the basis of the scoring and the Rental Committee’s investigation, you can make agreements about this with your tenant. Please note that each tenant has the opportunity to test the initial rent by the Renting Committee. If it turns out that the rent is too high, the Rental Committee will determine the new rent at the maximum rent that corresponds to the points total of your home. If, after this decision, it turns out that the tenant has paid too much, then it is up to them to go after this themselves and ask for their money back.

Permits 

In some cases, a permit from the municipality is required in order to be able to rent out the property. The permits that are required differ per municipality and per house. Check with your own municipality about the situation of your property.

In large cities such as Amsterdam, there is a Housing Ordinance. Cheaper, smaller and non-liberalized dwellings may not be rented out without the landlords housing permit. With this permit, the municipality actually ensures that cheaper houses are rented out to people with a lower income. This permit is only issued by the municipality, which determines whether a tenant is entitled to it.

Insurance

In addition, as a landlord you have to take into account that you have to take out a building/residential/liability insurance as a homeowner. A condition for insuring the property is that the property is used for private purposes only. Please note that damage due to theft or vandalism is only insured if there are traces of burglary on the outside of the house or room. The fact that payments are made at all is by no means self-evident for all insurances, to please check this carefully with your own insurance company.

I want more!

Do you still have any questions, ideas or do you need a little bit more information about this subject? Send an email to amsterdam@expathousing.com and we will reach out to you as soon as possible!