Can I rent out my house? 5 conditions explained
Can you buy a house and rent it out, or rent out your own house, just like that? Yes and no. Whether you can rent out your house depends on certain conditions. We outline the most important ones in this article.
A permit from the municipality
Each municipality has its own rules regarding the rental of properties, especially when it comes to temporary rentals. You may need certain permits, for instance, if you want to temporarily rent out a house that is for sale under the Vacancy Act. Planning to buy a house to rent out? First, check with the municipality about local regulations. This is particularly important if you intend to rent out a house or apartment for a very short period, such as via Airbnb or Shortstay. This falls under the designation 'lodging'. If your property is designated for 'residential' use, this type of short-term rental is prohibited.
Approval from the Homeowners Association (VvE)
And what about an apartment? Can you rent out your home if it is part of an apartment complex? Legally, you can, but the building’s partition deed takes precedence. This deed may contain a so-called 'owner-occupier clause'.
Partition deed
The partition deed contains information about the building, the apartment rights, ownership ratios, and the rights and duties of the apartment owners. It also includes the designation, which can prohibit rental based on 'lodging'. In some cases, any form of rental is forbidden by an owner-occupier clause. You can request a copy of the partition deed from the land registry.
Requesting permission
The partition deed isn't the end of the story. Sometimes the deed is outdated and current owners are not opposed to renting. In this case, you can ask the Homeowners Association (VvE) for permission to rent. If at least eighty percent of the residents agree, the partition deed can be amended. If you rent out the apartment without permission, the VvE can impose fines and restrictions.
Permission from the mortgage provider
If you want to rent out your own home – either temporarily or long-term, if you have bought a new house – you need to ask your mortgage provider for permission. This is crucial if there is still a mortgage on the property.
Owner-occupier clause
You can't just rent out a house with a 'normal' mortgage. The bank faces more risk with a rented property. Tenants in the Netherlands are well-protected and cannot be easily evicted. If you can't meet your mortgage payments and the property needs to be sold, the bank will be stuck with a house with tenants. The bank would then have to pay off the tenants or find a buyer willing to purchase a house with tenants, neither of which is ideal for the bank. Therefore, almost every mortgage contains an owner-occupier clause, requiring the owner to live in the property themselves.
Rental mortgage
If you want to rent out your property, you need to ask your lender for permission. This permission is rarely granted under normal circumstances.
Can you rent out a house with a mortgage at all? Yes! Banks offer special rental mortgages that cover the extra risks of renting. You can refinance your 'normal' mortgage into a rental mortgage, which is more expensive and comes with stricter conditions. Read more about renting out a house with a mortgage in our article.
Permission for short-term rentals
Under certain conditions, lenders may make exceptions for short-term rentals. For example, if your property is vacant because it’s for sale or you are temporarily living abroad. You can then sign a temporary rental contract with a tenant, who will not receive full tenant protection. This means the tenant must leave the property after a pre-agreed period. Depending on the situation, you can rent out your property this way for a maximum of two to five years.
A rental price based on the points system
If your plan meets all conditions, you're not done yet. You can only set the rental price yourself if your property meets certain conditions. This is called the Housing Valuation System (WWS) or 'points system'. The WWS determines whether you can rent out your property in the social or private sector.
Social and private rent
Each rental property is assessed on quality and given a number of points based on this. If your property is large, energy-efficient, and well-equipped, it will receive a high number of points. Above 142 points, you can set the rental price yourself and rent in the private sector. If the score is lower, you rent in the social sector and the rental price is determined by the number of points. The maximum rental price for 142 points is 763 euros. Later this of next year, this threshold will be 187 points, with a maximum rental price of 1100 euros.
A legally correct rental contract
Finally, the rental contract must meet certain conditions, partly because it’s legally required and partly because it saves you a lot of headaches:
Notice period: The notice period of a rental contract is legally set at a minimum of three and a maximum of six months. It depends on the type of rental contract, the type of property, and the rental period.
Tenant and landlord: Both parties must be of legal age and competent. As a landlord, you must also be the owner of the property or have a power of attorney to rent it out.
Delivery report: The description of the property’s condition is not only for handling damage and defects but also to show that the property meets all safety requirements.
Does my house meet the conditions for renting out?
Can I rent out my house? Koops Makelaardij can help you answer that question. Our rental experts will assess your property and can tell you exactly which conditions apply to you. We point out the pitfalls, help you determine the right rental price, ensure a watertight rental contract, and if desired, take all the management off your hands. We’d be happy to tell you more during a free, no-obligation introductory meeting.
