What is the best way to rent out your property?

You are considering renting out your property. Perhaps because you are going to live together and want to keep 1 property for the rental income (pension investment). Or you are looking for an investment property to buy again for renting. To tackle this best, note the following:

  1. Can you rent?
  2. Which rental contract is best for renting out your property?
  3. Can I prevent rent protection with a creative construction?
  4. Advice approach to renting out a home

Re 1: Can you rent?
First you have to consider whether you can rent.

  • For many mortgages it is arranged that this is only allowed with the bank’s permission. Check this.
  • In all cases, look carefully at the proof of ownership of the property. This may contain construction clauses or chain clauses (own occupancy clause) that do not allow it.
  • With apartments you regularly see that renting is not allowed. Therefore, take a good look at the split deed (this is leading), the household rules and the last minutes. Note: if the deed of division states that renting is not allowed, you can forget it. In other cases there is a chance that the VvE cannot legally enforce this against you.
  • If you are planning to rent out through “short stay” (Airbnb), look carefully at the rules that your municipality has made for this. There is a limit to this in Haarlem and Amsterdam. Note: “short stay” is being increasingly restricted. My advice is to stop buying property for short-stay investments.

How much can you ask about rent?
We see many people making the mistake of offering an investment property for a liberalized rental price, while there are not enough rental points for this.

Calculate how many points the home has on the website of the ‘Huurcommissie’. You need at least 146 points to be able to determine the rental price yourself.

Re 2: Which rental contract is best for renting out your property?
We work with the standard ROZ model rental agreement. It is ALWAYS strongly recommended to have your rental agreement drawn up by an experienced real estate agent or lawyer.

In ALL cases, I advise against drafting this yourself and / or cancelling a rental agreement without professional guidance. The rental law is quite complex in the Netherlands. By making a small mistake in the rental agreement or in the cancellation, you can become undesirably stuck with a rental agreement that you do not want.

A little more about the options for rent:

Option 1: fixed-term lease
The first option is to enter into a fixed-term lease. You can conclude this once with a tenant before it is for an indefinite period. The maximum period is 24 months. You can therefore conclude a lease for, for example, 6 months, 10 months, 14 months or (max) 24 months. Whatever you want. The tenant has a cancellation period of 1 month at all times. After the end of the period, the contract is converted into a contract for an indefinite period. If the landlord does not want this, he must send a letter to the tenant in which he announces the termination of the lease. The tenant may not do this earlier than 3 months before the end of the agreement and not later than 1 month before the end of the agreement. If you really want to be watertight as a landlord with a notice until the end of the lease, you can do so through a bailiff’s report, so that there can never be any discussion about not having received the notice.

Properties:

  • Period is lessor free, as long as it is a maximum of 24 months.
  • You can only offer this once per tenant.
  • The tenant can always cancel.
  • The landlord must not cancel the lease prematurely, but also not too late if he wants to terminate the lease at the end of the term.

Option 3: a lease for a definite period
Then there is also the fixed-term contract. The big difference with a temporary lease agreement is the following:

  • You enter into this contract for a minimum of 24 months and 1 day. In most cases, 25 months is therefore used. It may be as long as you want.
  • Both the tenant and the landlord cannot cancel prematurely.
  • Cancellation by both the tenant and the landlord at the end of the lease period.
  • The tenant does not have to give a reason for cancellation. The landlord DOES have to provide reasons why he is terminating the lease.
  • This contract form offers the possibility of including a “diplomatic clause” in it. This means that the lessor rents out the property because it goes abroad for an x-period. At the end of the rental period, parties with mutual consent can extend the agreement by means of an “Allonge”, each time with an x ​​period. This does not have to be 25 months. May also, for example, each time with 1 year. But again this only applies to the diplomatic clause because the landlord must be able to use the house again for his own use.

This option is therefore an excellent outcome if you go abroad for a minimum of 2 years.

Re 3: Can I prevent rent protection with a creative construction?
You see different “revolving door constructions”. As:

  • Put the agreement in the name of the other partner.
  • Place the tenant in a different apartment every time.
  • Put the tenant in a bungalow park for 3 months.
  • Have the tenant sign a cancellation letter before signing his tenancy agreement.
  • And a whole lot of void or voidable leases and constructions of landlords who have started to do creative themselves.

DO NOT! If you go to court, a judge will look at the explanation and underlying idea behind the agreements. As a landlord, you get really wet. As a broker, I certainly do not participate in this type of construction. You have to obey the law. What I can do for you as a (prospective) landlord is to give you some advice about your approach to letting. See below.

Re 4: Advice on approach to renting out a home
As a landlord, your rent protection cannot ultimately occur. Many people underestimate the enormous power of this rental protection. It usually goes well because the tenant and the landlord come together somewhere, because the tenant does not know or wants to exercise his rights, or has too few resources to go to court. But it does not always go well and it happens regularly that a landlord is stuck for a long or lifelong period to a tenant he does not want or to conditions that are not favourable to him.

My advice:

  • In ALL cases, be assisted by an experienced real estate agent and / or rent lawyer if you make transactions or cancellations.
  • Ensure that there is a thorough scan and selection of the tenants (income, contract, tenant statement, etc.).
  • Carefully monitor the terms in the agreement (when does it end and when should a letter go for cancellation, rent increase, etc.).
  • For cancellations: pay close attention to the period in which you cancel or cancel. Not too early and not too late and give well-founded reasons (therefore: let a real estate agent or lawyer do this for you).
  • Make sure that every lease contract is drafted in terms of conditions as if it were a contract forever. Suppose that you are unwanted to be stuck with the fixed-time contract forever, then it must be arranged, for example, that you can increase the rent freely annually.
  • Select tenants that you know will also leave again. For example, because they are likely to have children in a few years.
  • If you want to prevent rent protection, always work with temporary lease agreements and terminate the lease at the end of the period. This means new tenants every 2 years.
  • Ensure that you comply with all other regulations (fire safety, energy label, etc.)

Check your insurance policies. Your home insurance will probably be different if you start renting out the property.

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