Putting your Amsterdam rental property on the market
Owning a property in Amsterdam is a valuable investment. Rent out property in Amsterdam to expats after you leave the Netherlands to enhance your eventual profit as housing prices continue to rise.
Amsterdam expats considering selling their home or apartment have another option to consider: holding onto your property while renting it to other expats can be a very wise investment. 27 House Real Estate explains the benefits of putting your property on the Amsterdam rental market, and what considerations you should make.
House prices in Amsterdam are on the rise
Selling your property can cost you, especially if you bought at a peak time and have since seen the housing market in Amsterdam drop. The Dutch housing market on the whole took a hit following the economic crisis of 2008, with housing prices falling nationally that year by double-digit percentages — figures vary, but some reports claim as high as 22 percent.
However, according to Statistics Netherlands (CBS), home prices in Amsterdam rose by 14,7 percent during the second quarter of 2016 — higher than the rest of the country — making holding onto your property a solid investment. As the market value of your property rises, so does your chance of earning a higher profit when you do decide to sell.
Using an Amsterdam rental agent makes it easy
Whether your home or apartment is your personal residence or an investment property, navigating the process of getting the best rental price, the most risk-free tenants and ensuring your property is well managed can be daunting. Working with a rental agent takes the pressure off and leaves you worry-free.
A rental agent:
Knows the value of your property. We can ensure you get a competitive monthly rate that represents the worth of your home or apartment.
Has access to a range of potential renters. A local, Amsterdam rental agent will usually have connections with multinational companies hiring expats or with relocation agencies helping expats settle, including finding a property. Furthermore, most rental agencies in Amsterdam belong to city’s rental association, the VVA, and they use the same legal team for drafting contracts and give preference to others in the network.
Manages your property, locally. A rental agency in Amsterdam or another city that provides property management services gives you the peace of mind that comes with knowing someone is keeping an eye on your home or apartment while you cannot. Agencies often provide small services such as the safekeeping of keys or collecting post at no extra cost, but continuous responsibilities such as rental payments or dealing with emergencies such as a broken furnace may be handled as part of a property management package. Agencies may not offer this service directly, but partner with a trusted company that does.
Rental agents know the laws. Property renters in Amsterdam and throughout the Netherlands are protected by many laws, especially in regards to contracts—and these contracts and laws are updated frequently. A rental agent, especially one that has joined the Amsterdam Association of Rental Brokers (Vereniging van Verhuurmakelaars Amsterdam, VVA) or another association, is well versed in Dutch housing laws, which ensures you choose the right contract.
New law gives landlords more rights
Renters have held a lot of rights that made it potentially difficult for a landlord to evict them other than in extreme cases when a rental agreement had expired.
While renters still have many rights, since 1 July 2016, it is now possible for landlords to conclude a lease without showing grounds. However, the new contract stipulates that renters can end contracts at any time provided they give one month’s notice; additionally, once a contract is extended, renters can stay indefinitely and the owner cannot evict them. An Amsterdam rental agent can provide guidance regarding these new contracts, and draft one with you to and ensure that you are protected.
Finding risk-free tenants
A rental agency in Amsterdam will conduct a background check to ensure that your tenants are trustworthy, have a good renting track record and have the means to pay the rent. Additionally, a rental agent can draft a contract for you that ensures a tenant leaves when the term of the contract has expired.
Expats are the ideal tenants for your property, be it an apartment or home where you lived during your stay in Amsterdam or a property you bought as an investor.
Expats tend to be trustworthy tenants with guaranteed income and a set period of stay in the country. This gives you, as the property owner, the peace of mind of knowing the rent will be paid and the tenants will not overstay their contract. While there is no such thing as a risk-free contract, an experienced rental agency in Amsterdam can reduce the risk of troublesome tenants by completing credit checks and background checks.
Tax considerations when renting your property
If you rent out property in Amsterdam that you own, it is the value of the property — called the WOZ-value — that is taxed, minus the mortgage amount. This is taxed annually in box 3, where income from savings and investments in the Netherlands is reported. When you choose to rent your property, you are no longer to deduct the mortgage interest. If you live outside of the Netherlands while renting a Dutch property, not all assets fall under this category.
The rate of taxation for box 3 is 30 percent, based on the assumption that a taxable yield of 4% is made on the net assets. The effect is an annual tax of 1.2% on the value of the assets. Read more about taxes on investments in immovable properties here.
27 House Real Estate / Expatica
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