Renting out your house under the vacancy law: is it possible?

Renting out your house under the vacancy law can be an attractive option if your property for sale is vacant and not selling. Before taking this step, it's important to be well-informed about the conditions and process involved. This article will cover all aspects of renting under the vacancy law so you can make an informed decision.

What is the vacancy law? (Leegstandswet)

The vacancy law is a regulation that allows homeowners to temporarily rent out their property intended for sale when it is no longer occupied. This law was established to prevent vacancy and deterioration of properties. Renting under the vacancy law can be of interest to both private owners and housing corporations.

The basics of the vacancy law

If you want to rent out your house under the vacancy law, there are several basic principles to consider. Firstly, renting under this law is only possible if your property is listed for sale. Additionally, you must apply for a permit from the municipality before you can rent out your property. This permit is granted for a specific period and can be valid for up to seven years.

The history and purpose of the vacancy law

The vacancy law has been in place since the 1980s and was introduced to address the issue of vacant properties. The goal of this law is to encourage temporary rental of vacant properties to prevent them from deteriorating and to ensure they are utilized. This benefits both property owners and potential renters who struggle to find suitable housing.

Conditions for renting your house under the vacancy law

Before you can rent out your house under the vacancy law, there are several conditions that both the property and the tenant must meet.

Requirements for your property

Firstly, your property must be demonstrably for sale before you can rent it out under the vacancy law. The property must also be suitable for habitation, with all necessary amenities in place. This includes a functioning central heating system, a working kitchen, and sanitary facilities. It’s important to rent out the property in good condition so the tenant can live there without issues.

Rules for the tenant

The tenant of your property must also adhere to certain rules. The lease agreement must be for a fixed term, equal to the duration of the permit you need to obtain from the municipality. Furthermore, the tenant has no right to rent protection and you can terminate the lease agreement easily when the permit expires, with a notice period of three months. However, it is important to make clear agreements with the tenant and document them in a lease agreement.

The process of renting out your house under the vacancy law

Renting out your house under the vacancy law involves several steps you need to follow.

Obtaining permission from your mortgage lender

If there is still a mortgage on the property, the first step is to contact your mortgage lender. You need to obtain their permission to rent out the property under the vacancy law.

Applying for a vacancy permit

After receiving approval from the mortgage lender, you must apply for a permit from the municipality. This permit is required and can be valid for up to seven years. Often, the permit is initially granted for two years and can be extended up to a total of seven years. After submitting the application, the municipality will review it and grant the permit if approved.

Informing your insurance company

Your insurance company, with whom you have your building insurance, must also be informed that you intend to rent out your property under the vacancy law. Your policy must include a clause allowing rental under the vacancy law. Some policies already include this as a standard provision, so check your policy carefully or contact your insurer.

Finding a suitable tenant

Once you have arranged the above matters, you can search for a suitable tenant for your property. It is advisable to use a rental agent with experience. It is important to screen and select potential tenants based on their reliability and financial situation to avoid potential issues during the rental period. The lease agreement should also include specific clauses applicable to rental under the vacancy law. Often, the mortgage lender will also need to review this contract before agreeing to the rental.

The benefits and drawbacks of renting under the vacancy law

Renting your house under the vacancy law has both advantages and disadvantages that you should consider.

The benefits of renting under the vacancy law

One of the major benefits of renting under the vacancy law is the flexibility it offers. You can decide how long you want to rent out your property and can easily terminate the lease when the permit expires (with a notice period of at least three months). Additionally, you can generate income from your vacant property and prevent it from deteriorating during the vacancy.

Potential risks and disadvantages

While renting under the vacancy law can offer many benefits, there are also risks and disadvantages to consider. It can be challenging to find a suitable tenant, and you need to account for costs such as applying for a permit and obtaining a different building insurance policy.

Frequently asked questions about renting under the vacancy law

If you are considering renting out your house under the vacancy law, you may have some questions. Below are answers to some frequently asked questions.

How long can I rent my house under the vacancy law?

The period for renting your house under the vacancy law depends on the permit you receive from the municipality. This permit is valid for up to seven years but can also be issued for a shorter period. The general rule is that the permit is valid for up to two years. At your request, the permit can be renewed annually up to a maximum of seven years. It is important to be aware of the validity period of your permit and to take action in a timely manner if it is nearing expiration.

What happens if my permit expires?

When your vacancy permit expires, the lease agreement with the tenant automatically ends. You are then no longer permitted to rent out your property under the vacancy law, and the tenant will need to vacate the property. It’s important to make clear agreements about this in the lease agreement so that both parties know what to expect.

Overall, renting out your house under the vacancy law can be an appealing option if you have a property that remains vacant for a long period. It offers flexibility, income, and prevents deterioration of your property. However, it is crucial to be well-informed about the conditions and process involved. With the right knowledge and preparation, you can make an informed decision and successfully rent out your property under the vacancy law.