Renting out your house to expats: Here’s How!
Renting out a property to expats is becoming an increasingly popular option. Between 2003 and 2018, the number of expats in the Netherlands increased by a whopping 73 percent, and this trend is expected to continue. Why is this interesting? Because renting to expats comes with several benefits! We are happy to share with you how to successfully rent out to expats.
Why rent out to expats?
Expats are not the same as immigrants. Expats are knowledge workers who come to the Netherlands for work due to their specific expertise in a certain field. Often, their employment in the Netherlands is temporary, for example, one or two years. Most expats are highly educated professionals with good jobs, such as managers or technicians. This makes expats a particularly attractive target group for renting out, for several reasons:
Expats are highly educated and often tidy tenants.
Expats have a stable, relatively high income.
Employers often provide expats with a housing budget, allowing them to pay higher rents.
As a landlord, you can have some certainty about how long the expat will stay in the Netherlands and for how long you can rent out the property.
Renting your investment property to expats
It’s not a bad idea to specifically look for an investment property to rent out to expats – or to make your current real estate investment as attractive as possible for renting out to expats. In that case, consider the requirements that expats generally have for housing.
Strategic location
Expats usually work for large, international companies, knowledge organizations, or universities. These are mostly located in the Randstad area. Houses in major cities, near train stations, or strategically located along highways are therefore popular.
Local amenities
Many knowledge migrants bring their partner or entire family to the Netherlands. Good amenities, such as an international school or a daycare center nearby, are essential. A lively neighborhood with restaurants, shops, and museums is also appreciated by expats who want to experience some Dutch culture
Well-maintained property
Since expats are often in the Netherlands for a specific period, they look for a property that needs no further work. If you aim to rent to expats, ensure the property is well-maintained and geared towards convenience and comfort. Modern amenities such as fast WiFi, a smart TV, a good coffee maker, and a washer-dryer combo are essential. Keep the interior neutral, with quality furniture and clean, fresh towels, linens, duvets, and pillows.
Temporarily renting out your own home to expats
Expats who come to live in the Netherlands for a few months or a year are also the ideal target group for those who are temporarily leaving. Are you going abroad for work or finally taking that world trip? You can significantly reduce costs by renting your home to expats in the meantime! In this case, consider some specific questions.
Furnished or unfurnished?
A furnished property is much easier to rent out to expats than an unfurnished one. However, you might not feel comfortable with strangers living in your house with your belongings. Consider storing your expensive designer couch but buying new furniture for the property. This reduces your yield but is an excellent opportunity to make your property rental-ready and attract many potential tenants.
Including or excluding utilities?
If you rent your property for a relatively short period, such as six months, it’s common for you to keep paying the gas, water, and electricity bills yourself and settle this with the tenant. Make clear agreements about this in the rental contract. If you rent out for a longer period, you can consider letting the tenant sign new contracts themselves, although this might deter expats. For someone who doesn’t speak Dutch, arranging such things can be quite challenging, and expats already have enough stress regarding the emigration itself. Therefore, consider working with a rental price that includes these costs.
What insurance to take out?
Before renting to expats, check whether your contents and building insurance covers subletting. The contents insurance should remain in your name; after all, it’s your contents. But what happens if your tenant damages your belongings? Ensure the contract states that the tenant must take out their own liability insurance to cover such damages.
Can I rent out temporarily just like that?
You cannot just rent out your property temporarily to expats. Both the homeowners’ association (VvE) and your mortgage lender must be informed. It also affects your taxable income. For instance, temporary rental can influence your mortgage interest deduction, and you must declare seventy percent of the rental income to the tax authorities as 'income from temporary rental.
Renting out to expats without issues
It is always challenging to predict what kind of tenant you will get. This is especially true when renting to expats. An expat comes from a different background, has a different culture, and may not know how things work in the Netherlands. Sometimes it’s not possible to meet in person beforehand, for example, if the expat is looking for a house in the Netherlands from their home country. How do you approach this smartly?
Financial check for expats
Always ask a potential tenant for an indication of their income. A gross income of three times the monthly rent is considered the norm. Does the employer (partially) pay for the rent? Ask for confirmation of this as well. For a modern, fully furnished property, you can also reasonably ask for a deposit of two or three times the monthly rent on top of the rent.
Drafting a solid rental contract
The rights and obligations around renting and leasing can vary significantly by country. You may think it’s normal for the tenant to pay for damages, while the tenant may see no harm in painting all the walls. Cultural differences can cause significant issues. Therefore, draft a solid (bilingual!) rental contract that is legally sound. Include agreements on wall decorations, new furniture, small renovations, damages, pets, etc. Add an inventory list with photos to document the property’s condition.
Engaging a rental agent
Want to save time and effort and ensure you rent your property to reliable expats? Hire a rental agent. Koops Makelaardij specializes in rentals: our dedicated team of rental professionals rents out about a thousand rental properties annually, primarily to expats! With our extensive network of international companies and fifteen years of experience in renting out properties, we find a suitable candidate for your property in no time.
Learn more about renting to expats. Or contact us. We will visit your property for a free consultation and provide you with professional tailored advice.
