Rent your house to expats
Expats house for rent in Amsterdam
Do you want to learn more about renting your house to expats in Amsterdam? This blog will guide you through the process of renting to expats, including understanding the expat market, legal requirements, preparing your property, setting the right rent, and managing the tenancy. We will also cover the benefits and considerations of renting your house to expats.
Expats are looking for various types of houses, from studios to villas
Amsterdam’s rental market is diverse. Expats seek everything from compact city-center studios to spacious villas on the outskirts. Expats often have specific needs, varying by lifestyle, family size, and proximity to work or school. Understanding these preferences is crucial when preparing your property for the market.
Is renting out to expats lucrative?
Expats, especially, know that the Amsterdam rental market offers lucrative returns. With their higher disposable incomes due to corporate housing allowances or higher salaries, they can afford premium properties. Also, companies often pay employees’ rent, ensuring a steady income for landlords.
Since July 1, 2024, the Fixed Rental Contracts Act (Wet Vaste Huurcontracten) has come into effect, meaning that rental contracts are generally for an indefinite period unless exceptions apply, such as temporary rentals for renovations.
A key advantage of renting your house to expats in Amsterdam is that they often stay for a fixed period, usually around two years, before moving to another country for work. This offers landlords flexibility and the opportunity to re-rent or sell the property after the expat tenant departs. This means that, despite the indefinite-term contracts, landlords can still benefit from the relatively short stays of expats.
Who pays the monthly rent: expat or company?
Often, the expat’s employer pays the monthly rent. This may be direct or as part of a housing allowance. This arrangement secures landlords. Companies are more reliable payers than individuals. It is essential to clarify this aspect before signing a rental agreement.
If the company pays the rent, the lease must state this. It must include the payment terms and any remaining tenant responsibilities. This arrangement reduces the risk of late payments and financial disputes.
Renting to expats? Always ask for advice!
Renting your house to expats in Amsterdam is rewarding but has complexities. Experienced property managers or rental agencies help you. They will market your property, set the correct rent, and manage daily tasks. This assistance is invaluable, especially if you are new to the rental market.
Is my property suitable for renting to expats?
Before listing your property, it is crucial to assess whether it meets the standards expected by expats. Expats want modern properties that are well-maintained and have vital amenities. Proximity to public transport, schools, and business districts is also crucial in their decision-making. Consider upgrades such as modern appliances, reliable internet, and quality furnishings. These improvements make your home more appealing to expats and justify a higher rental price.
Why expat rental of my own home?
Short-term foreign residents gain from renting your home. This strategy allows you to maintain homeownership while generating a steady income. Expat tenants often take good care of their rentals. They are accustomed to living in well-maintained homes and typically take on responsibility. Renting your house to expats also offers flexibility, as they often stay in the Netherlands temporarily. After about two years, they often move on to another country. This means that your property becomes available again, allowing you to move back in, sell it, or rent your house to expats once more.
Temporarily renting out your own home to expats
If you’re considering renting out your home while away, expats make ideal tenants. Their temporary stay often aligns with your needs, whether you’re relocating for a job, traveling, or moving in with a partner. This arrangement is financially helpful. Expats often pay a premium for high-quality, fully furnished homes. Renting to them will maximize your rental income during your absence.
Note: Temporary rental is still possible under certain conditions, despite the Fixed Rental Contracts Act. You will need a Model C contract for this.
Rent protection
Like any other rental arrangement, renting your house to expats comes with certain risks. To mitigate these risks, it is wise to consider rent protection. This insurance covers lost rental income due to non-payment by the tenant.
Rent protection is vital when renting to expatriates. Their jobs can change unexpectedly, leading to early lease terminations. A rent protection policy protects you from such scenarios.
What rental price can I ask for my property?
The rental price reflects the location, size, amenities, and condition of your home and the current market trend. For a hassle-free apartment rental in Amsterdam, it’s important to understand these factors that influence rental prices.
A professional property valuation or a consultation with an expat real estate agent like pcwhousing.nl will give you an accurate rental price. Take into account the Affordable Rent Act when determining your rent. Additionally, rent increases are regulated until 2028. This applies to all rental properties, whether they are in the mid-rental segment or the private sector.
Rent increases: how often and how much?
You must know the rent increase rules when renting your house to expats in Amsterdam. The Dutch government regulates rent increases to protect tenants from excessive hikes.
Rent is usually increased annually. However, to avoid disappointment, it’s important to follow the legal guidelines. Notify your tenant in advance, as required by law. Also, ensure the increase is justified by market conditions or property improvements.
Energy label – necessary for renting out your property
When renting your house to expats, you must provide an energy label. The label shows the home’s efficiency, which matters to expats who are worried about utility costs and the environment.
A property with a better energy label (A or B) will likely attract more interest and justify a higher rental price. If your property has a low energy rating, consider improvements. Better insulation or energy-efficient appliances can help make your property more appealing.
Regulation for renting out: smoke detectors
Ensuring your property meets safety regulations is crucial when renting to expats. In the Netherlands, smoke detectors are mandatory in rental properties. Install these devices on each floor of the property.
Non-compliance with this regulation will lead to penalties and directly affect your insurance coverage. So, installing and maintaining smoke detectors on your property is essential. This ensures your tenants’ safety and complies with Dutch law.
An opportunity with flexibility: rent your house to expats in Amsterdam
Renting a house to expats in Amsterdam can be a good choice, particularly due to the flexibility it offers. Expats are often temporary residents, which means your property becomes available again after they leave. This can be advantageous, as you may choose to re-rent the property or even sell it after their stay, with the vacant value typically being higher than the value when rented out. To do this, understand expats’ needs, comply with local laws, and set a fair rent.
Seek professional advice if you’re renting out your apartment in Amsterdam. Your property must meet the high standards expected by expats. With the proper preparation, renting your house to expats can be easy and profitable, but it is not necessarily more profitable than renting to other tenants.
Do you need help with buying an apartment in Amsterdam to rent out to expats? Seek advice from the real estate agent in Amsterdam; PCW Housing.
PCW Housing – Rental Agency Amsterdam