Things to keep in mind when renting out your home
If you bought a new home before you manged to sell your old one, you may want to consider renting it out. This could be a smart financial move that guarantees an element of social control. But how will this affect the sale of your home? Renting out your home under the Dutch Vacancy Act (Leegstandswet) is one option that allows you to keep your house on the market while you generate income in the form of rent. We would be happy to tell you all about renting out your home under the Dutch Vacancy Act.
Renting out your home
In order to rent out your home while it's still on the market, you'll need a vacancy permit. This permit will allow you to rent out your home temporarily under the Dutch Vacancy Act. One advantage of this approach is that a lot of the provisions in the Dutch Civil Code governing rent protection don't apply. This means you can terminate your tenant's rental contract when you sell your home, bearing in mind a notice period of three months.
The conditions for renting out your home under the Vacancy Act
You'll have to meet several conditions in order to rent out your home under the Dutch Vacancy Act. One such provision is that your home has to be for sale and no one can be registered as living at that address. In order to obtain a five-year vacancy permit, one of the following situations must apply:
- The property is a new build and has never been lived in before;
- The homeowners used most or all of the property as their primary place of residence in the twelve months prior to the vacancy;
- The property was only rented out (in whole or in part) for three years in the ten years prior to the vacancy.
If you meet one of these three conditions, you can request a five-year vacancy permit. If your property is for sale but you do not meet one of these conditions, you can apply for a two-year permit instead. This permit can be extended for twelve months each year for a total permit period of five years.
Rental contracts and the Vacancy Act
If you choose to rent out your home, your rental agent will help you determine the ideal rental price and delivery state. A photoshoot will then be arranged and your home will be listed online. Once a potential candidate has been found, a viewing will be scheduled. If the candidate is interested in the property, a rental contract can be drafted and the tenant can move in. Stoit would be happy to take over these administrative tasks on your behalf. If you're interested in renting out your home under the Dutch Vacancy Act, the rental contract should also include several legal clauses.
Vacancy permit: costs and application procedure
In order to rent out your home under the Dutch Vacancy Act, you first have to apply for a vacancy permit. You can do this by completing an application form at city hall and submitting documents to prove that the property is for sale and easy to find for potential buyers. The permit costs vary per municipality and range from zero to several hundred euros. But don’t worry, you'll quickly earn back this expense with your new rental income!
The disadvantages of renting out your home under the Vacancy Act
While renting out your home under the Vacancy Act may seem like an attractive and fool-proof option, the odds of finding a potential tenant will be smaller if the rental contract includes a litany of clauses. Some tenants don't bother with properties that include a vacancy clause in the rental contract. Major companies and expats, for example, tend to prefer properties without termination clauses. Many are looking for a comfortable and worry-free home for the duration of their stay in the Netherlands. That said, this particular group of tenants tends to be temporary in nature.
We would be happy to advise you on the rental prospects of your property! Contact us for more information.