Amsterdam rental agent

How to let property on the Amsterdam market with a rental agency

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Owning a property in Amsterdam is a valuable investment. With housing prices in Amsterdam still on the rise, renting out your property to expats after you leave the Netherlands can increase your eventual profit.

Expats in Amsterdam that plan to leave the country may consider selling their home or apartment, but they have another option that may prove even more lucrative: renting the property to other expats. 27 House Real Estate explains the benefits of letting property on the Amsterdam rental market, and what considerations you should make.

House prices in Amsterdam still climbing

Selling your property can be a costly endeavor, especially if you bought the property at a peak time. The Dutch housing market 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.

Recently, the National Association of Realtors (NVM) reported that Amsterdam has shown year-over-year price increases of 20 percent, the highest in the country. But as the market value of your property rises, so does your chance of earning a higher profit when you do decide to sell.

Find a rental agent in Amsterdam

Benfits of using an Amsterdam rental agent

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. To take the pressure off and ease your mind, find a rental agent in Amsterdam with which to work.

Compared to renting out a property privately, a rental agent in Amsterdam has quite a few advantages:

> Rental agents know the potential value of the property. Rental agencies have access to a wealth of data to ensure you get a competitive monthly rate that represents the true value of your home or apartment.

> An agency can tap into a larger pool of renters. A local, Amsterdam rental agent generally has relationships with multinational companies that frequently hire expats or with relocation agencies that help expats settle - and both help finding propertoes for their clients or employees. Furthermore, most rental agencies in Amsterdam belong to the city's rental association, the Amsterdam Association of Rental Brokers (Vereninging van Vanhuurmakelaars Amsterdam, VVA). Not only do they yse the same legal team to draft contracts, they often give preference to others in the network.

Rental agents in Amsterdam can manage your property locally. Some rental agencies in Amsterdam provide comprehensive property management services, in which the agency monitors the home or apartment when the property owner cannot.

Other agencies often provide small services such as keyholding or mail collection at no extra cost, but continuous responsibilities such as rental payments or dealing with emergencies such as broken furniture 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. Renters in Amsterdam and throughout the Netherland 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 VVA or anoter association, is well versed in Dutch housing laws, which ensures you choose the right contract without any hidden surprises.

Rental agents in Amsterdam

Dutch 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, as of 1 July 2016, it is now possible for landlords to conclude a temporary 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. Temporary leaves have been broadened, allowing for young people and large families to take advantage of the law.

An Amsterdam rental agent can provide guidance regarding these new rental contracts, and help draft one that protects you and the tennant equally.

How to find risk-free tenants

A rental agency in Amsterdam will conduct a background check to ensure that prospective 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, whether it is an apartment or home in which you lived as an expat in Amsterdam or a property you bought as an investor.

Expats tend to be trustworthy tenants with guaranteed income and a fixed period of stay in the country. This generally guarantess the property owner, that rent will be paid on time and in full, 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.

Rental agency in Amsterdam

Tax issues when letting 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 no longer deduct the mortgage interest. If you live outside of the Netherlands while letting 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 percent is made on the net assets. The effect is an annual tax of 1.2 percent on the value of the assets. Find out further information about taxes on investments in immovable properties at the Dutch tax authority.


27 House Real Estate / Expatica

Amsterdam rental agent - 27 House Real Estate

 
 

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