Information for tenants

 

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Renting a property

Renting is divided up in Holland between social or rent controlled schemes run by the government through housing corporations and the private market.

Rent controlled housing is subject to a points system that determines maximum rent for a certain house depending on such things as amenities, floor space and the general state of a building. Your eligibility for such housing is dependent on your income and the amount of time you intend to stay in the country. Typically you will need to register with a housing corporation and enter the queue. There are long waiting lists (up to 10 years) for people to get their place through this system but the rent is significantly less than through the private market. For more take a look at www.amsterdam.nl and look up "housing" in the English section. Most cities operate roughly the same system.

There is a shortage of rental properties in the Netherlands, especially in the main cities, and although many new rental developments are being built, these are mainly just replacing older properties that are being demolished. This means that prices for a good standard of rental accommodation are high. The top end of the rental market (that is anywhere above about EUR500,-- a month) is a free for all where prices typically vary between 600 euros for a 19th century city apartment of 50 square metres in a reasonable state to well over 2500 euros/month for a fully restored floor in a 17th century canal house in the centre of Amsterdam. Rents are due in the first week of the new month and you pay them either directly to your private landlord or to an agency that operates between you and the landlord. Real estate agents offer such services for instance.

When renting a property in the Netherlands you will normally be required to sign a rental contract (which can usually be provided in English if necessary). In most cases, properties are let for an indefinite period of time. The contract will set out details of:

- The amount and timing of rent payments, with rent usually payable one month in advance.
- Details of annual rental adjustments, which are usually based on official cost of living statistics and have recently been around 2-3%.
- The amount of deposit required, which is normally the equivalent of one or two months' rent. A bank guarantee for the specified amount can sometimes be substituted.
- Any brokerage fee, which is usually the equivalent of one month's rent, excluding VAT.
- Details of regular payments which are additional to the rent, such as maintenance charges, utilities bills, real estate tax and local taxes. In some cases, maintenance and utilities costs are included in the rent.
- Details of the division of responsibilities between the landlord and the tenant for minor and major repairs to the property. In general, tenants are required to pay a flat rate of EUR110 excl VAT for each minor repair, regardless of cause, while the landlord is responsible for the cost of all structural and other major repairs unless the damage was caused by the tenant.
- Details of the tenant's responsibilities for maintenance of the property including, for example, servicing of heating systems and clearing or draining of gutters, pipes etc., and the requirement to leave the property in the same condition as when they moved in.
- Details of the notice periods required to terminate the contract, which for the tenant is normally two months.

Both the landlord and the tenant are required to sign the contract, and after the deposit has been paid the keys are handed over to the tenant. Before they move in they will be required to sign an inventory of the full contents and condition of the property.

When the tenant vacates the property at a later date, the landlord will check the condition and contents against the original inventory. The landlord is then required to refund the deposit, minus any deductions for missing contents, necessary repairs or unpaid bills, within three months of the tenant's departure from the property.


Finding a property

Property prices in the Netherlands have risen sharply in recent years, from an average of EUR137,000 in 2002 to around EUR250,000 in 2007, although they have now largely stabilized. Rising property prices have also had an impact on the rental market, with rental accommodation now very expensive especially in the main cities. The monthly rent on a typical one-bedroom apartment in central Amsterdam is likely to be around EUR1200-1500. Nevertheless, housing and rental prices are still lower in Amsterdam and the Netherlands' other main cities than they are other European cities such as London and Paris.

The levelling off of house prices at a high level means that property may not be a good investment for expats moving to the Netherlands for a limited time, since there is no certainty of making a profit on the investment. Moreover, it can often take several years to recover the steep one-off fees associated with the purchase of a property in the Netherlands, which usually amount to around 10% of the purchase price.

However, home owners who are resident or partially-resident taxpayers in the Netherlands can benefit from generous tax deductibles.

In general, older properties in well-established areas are most popular with Dutch buyers, and there is a major shortage of this type of property on the market. There are many new housing developments of single family homes in Amsterdam and the other main cities, and properties on these can sometimes be designed to the specific requirements of the buyer. However, many of these new city properties are sold on a leasehold basis, with the land remaining in the possession of the municipality.

Details of properties available to buy or rent in the Netherlands can be found in the classifieds sections of newspapers such as the Telegraaf, Via Via and De Partikulier, usually on Wednesdays or Thursdays, and on notice boards in places such as supermarkets, libraries, churches and schools. Prospective tenants or house buyers can also drive round the residential area of their choice to look for Te Koop (for sale) boards or Te Huur (for rent) boards, which will provide contact details to arrange a viewing.

Most house buyers in the Netherlands use the services of an estate agent (makelaar) and expatriates in particular are likely to benefit from their expert knowledge of the market and negotiating expertise. All estate agents have access to a computerized listing of currently available properties and many also deal with rental accommodation. Estate agents fees are normally around 2% of the purchase price of the property.

source: www.expatfocus.com