TENANTS

Category: Rental

City Estate > Rental
09apr

Smoke detectors mandatory from July 1, 2022

As of July 1, 2022, it is mandatory to install a sufficient number of smoke detectors, even in existing buildings. For new construction homes, the smoke detector requirement has existed since 2003. Under the new legislation, as of July 1, 2022, existing construction must also be equipped with smoke detectors. Because the building code is being amended, you are required by law to comply with this; this also applies to rental properties.

Regulation

The new law requires one inspected smoke detector per floor. Spaces such as a basement or attic, which do not serve as living quarters, do not have to meet the new requirement.

There are some exceptions. For example, student houses are required to hang a smoke detector per (occupied) room. Also, an enclosed space (such as a hallway) used as an escape route is required to be equipped with a smoke detector.

Requirements

In new construction houses it is mandatory to connect the smoke detector to the mains, also a back-up battery must be present. In existing buildings this is not important and a detector with batteries is sufficient. All smoke detectors must comply with the European NEN-14604. Also, the mains-connected detector must meet the NEN-2555 standard. In both cases they must have a CE mark.

Why?

The new law was introduced because most people become victims of fire while sleeping. With the help of a smoke detector, the number of victims should be significantly reduced according to Minister Knops.

"Most fire victims are caused by smoke inhalation. Smoke detectors therefore save lives. TNO research last year shows that smoke detectors in all homes reduce the risk of fatalities. Therefore, I want to amend the Building Code on this point and make smoke detectors mandatory not only for new construction but also for existing construction."

Installing smoke detectors on site

City Estate has selected a suitable smoke detector that meets all requirements and standards with a 10-year battery life. We can completely relieve you as a property owner in placing and installing these smoke alarm(s) on location before July 1, 2022. Interested and want to know more about this? Then get in touch with us!

20jan

Free sector rents also continue to rise sharply in Q4 2021

Like the third quarter, rents continue to rise significantly in the fourth quarter. This is evident from the figures recently released by Pararius. Whereas in the first two quarters of 2021 the figures were still trending downward, the falling rents due to COVID-19 now appear to have really disappeared.

COVID-19

Whereas the average rent still dropped significantly in 2020 as a result of COVID-19, this was completely reversed in 2021. The negative effects due to COVID-19 were mainly due to expats staying away and tourist rentals coming to a halt. With the revival of the expat market at the beginning of 2021, the price dampening effect for rent disappeared completely. By the second quarter of 2021, there already appeared to be no further decline in prices with a significant rebound in the third and fourth quarters of 2021.

Figures from Q4 2021

Figures from Pararius revealed that new tenants in the free sector paid an average of 5.3% more in the last quarter of 2021 compared to the last quarter of 2020. The average rent per square meter rose many times worse in the free sector last quarter. The average rent per square meter for furnished properties rose to €19.68 which is a percentage increase of 8.1% compared to the same period a year earlier. The average rent per square meter for unfurnished homes rose 8% from €15.18 to €16.39 per square meter. Bare rented homes increased the hardest in price by 20.9% from €14.42 to €17.02 per square meter.

Amsterdam, The Hague, Utrecht, Rotterdam and Eindhoven

Amsterdam is still a leader in rental prices and here there has been a 1.7% increase this year. New tenants now pay an average of €22.45 p/m2 per month in Amsterdam.

Utrecht, at €18.33, is also above the national average. This year an increase of 2.9% took place there. The central location that results in an awful lot of activity is one of the main reasons that the cathedral city experiences such a strong price.

The remaining three are just below the national average: The Hague €16.89 p/m2 with +6.8% growth, Rotterdam €16.89 p/m2 with +9.7% growth and Eindhoven €15.76 p/m2 with +11.7% growth.

Counties

The free rental sector is also rising provincially in each area. In the north they still lead as the cheapest in the three provinces: Drenthe €11.05 per square meter (+16.1%), Friesland €10.66 per square meter (+17%) and Overijssel €11.58 per square meter (+10%).

Groningen, on the other hand, comes out higher, here it paid €14.23 per square meter. In Gelderland (+8.4%), Limburg (+8.2%) and Zeeland (+9.5%), the average square meter price is around €12. New tenants there paid €12.60, €12.19 and €12.43 per square meter per month, respectively. North Brabant experienced an increase of 7.7%, a rental property here cost an average of €14.07 per square meter per month in the fourth quarter of 2020. North Holland, as indicated above, remains the most expensive province at €20.49 per square meter. There was a slight growth of +0.6%. This high rent is driven by the popular cities located here.

04dec

All about buyout protection

Several cities in the Netherlands such as Rotterdam, among others, are starting to introduce an obligation to self-occupy. The owner-occupancy obligation is being introduced as buyout protection against real estate investors. This owner-occupation obligation will apply from January 1, 2022 on the basis of the law "Acquisition protection and extended possibilities for temporary rental". The buyer of the property must live in the property himself and may not rent it out for a period of four years.

With this, the municipalities want to prevent real estate investors from buying homes with the aim of renting them out. The municipality of Rotterdam calls the measure "good for the livability of vulnerable neighborhoods." Temporary occupancy would lead to "an unpleasant residential neighborhood where residents do not know each other and do not say hello."

How does the buyout protection work?

The option is given to municipal councils to include buyout protection in the housing ordinance. The municipal council must substantiate why the use of buyout protection is necessary, appropriate and proportionate to maintain or promote livability in the neighborhood in question. Buyout protection applies only to low-cost and medium-cost housing. Which homes fall under low-cost and medium-cost varies by municipality. A municipality itself must substantiate on the basis of the situation up to which WOZ value owner-occupied houses fall into the cheap and medium-priced segment. In principle, the regulation lasts until January 1, 2025. An evaluation will be carried out within three years of the introduction of the law. It is possible that the buyout protection will be extended.

The buyback protection applies only to owner-occupied homes acquired after the introduction of the scheme and to homes that were in rented condition for a period of less than six months on the date of delivery to the new owner. Properties that had been rented for more than six months at the time of transfer before the buyback protection was introduced are not covered.

Rotterdam

From January 1, 2022, 16 neighborhoods in Rotterdam will be subject to a self-occupancy requirement for low and middle segment housing with a WOZ value of up to €355,000.

The buyout protection applies in the 16 districts below:

Source: Rijnmond

Amsterdam

The City of Amsterdam is also working on a self-occupancy obligation for existing homes. In Amsterdam, the city council wants to introduce buyout protection for homes with a WOZ value of up to €512,000, substantially higher than in Rotterdam. The city council will vote on this plan in February 2022. When the plans in Amsterdam finally go through, about six out of ten Amsterdam homes will fall under the buyout protection, according to research by NOS.

Other cities

Other cities are also introducing buyout protection. A survey by the Volkskrant reveals that 130 municipalities are considering instituting a self-occupancy obligation for existing homes after January 1, 2022. Some municipalities have already proposed concrete plans, such as The Hague, while others are going to investigate the possibilities. A change in the law will make buyout protection measures for existing homes possible from Jan. 1, 2022, in addition to the self-housing obligation for new construction. Municipalities in the Netherlands are allowed to designate their own neighborhoods or districts where buyout protection will apply. So we will have to wait and see which other cities will follow.

Exceptions

There are a few exceptions to the rule. For example, a house may be rented out to immediate family members or temporarily rented out when staying abroad, for example.

15 Oct

Free sector rents increased in Q3 2021

The latest figures from housing platform Pararius show that the average national rental price of homes in the free sector has increased by 2.5%. After a period of declining rents, an increase has been seen. As a result of COVID-19, a decrease was observed over the past four months. Only in the sector with bare rental housing, there is a decrease of 4.9%.

Delivery forms

In the third quarter of 2021, the average price per square meter for a furnished house was €18.99 per month in the free sector. This is a -2.7 percent difference from a year earlier. Prices of unfurnished homes rose by an average of 2.9 percent to €15.98 per square meter per month. The average rental price of a bare rental home fell 4.9% last quarter to €12.60 per square meter per month.

Developments in the five major cities (G5)

Pararius figures show an increase in rental prices in all five major cities. In the third quarter of 2021, the average rent in Utrecht rose 5.2% to €18.38 per square meter per month. The average rent in Amsterdam rose 1.6% to €22.44 per square meter per month. In The Hague, the average rent increased by 1.9% to €16.30 per square meter per month. In Eindhoven, the average rent increased by 8.1% to €14.85 per square meter per month. In Rotterdam, the average rent increased by 1.9% compared to Q3 2020 to an average square meter price of €16.36 per month.

Developments outside the G5

Other cities are also showing increases in rents. In many cities, rents increased by percentages between 5- and 10% last quarter. In only a small number of cities did average rents fall. In Amersfoort, the average rent dropped by 1.2%, in Middelburg by 8.1% and in Roermond by 7.1%.

Rent Advice

Do you want to rent out your property or do you have an investment property in mind and are curious about a realistic and market-based rent? City Estate is the specialist in letting and managing residential properties. We give you free and non-committal rent advice. This advice is based on our experience and the current market conditions. So you know in advance what a market-level rent is. Interested? Request free and no-obligation rent advice now!

21sep

Real estate in box 3, how to keep it that way?

If you as a natural person own real estate you would like it to fall in Box 3, under asset management and not in Box 1 under income. Among other things, this has to do with how the tax authorities determine your assets as a real estate investor. In this blog you can read all about real estate investing and box 3.

Does my real estate fall into box 3?

For private investors who own real estate as natural persons, the basic rule is that this falls under Box 3. This must involve a normal situation. The tax authorities call this 'normal asset management'. The rent you receive is untaxed; on the other hand, you may not deduct items such as maintenance costs or interest.

What is not normal asset management?

The Internal Revenue Service lists several situations where there may be income from other income rather than normal asset management:

  • leasing out a property
    For example, you converted a property to create separate apartments that you sold or are going to sell.
  • Performing at least 30% of major maintenance or other modifications to a leased property yourself
  • Using prior knowledge or other specific knowledge to gain advantage.

How can I keep my real estate in Box 3?

There is no clear guideline for when your investment property falls into Box 1 or Box 3. Incidentally replacing a light bulb can still be seen as normal asset management. But as soon as you yourself, as a real estate investor, start performing all activities involved in renting out real estate and remain actively involved in this, the tax authorities will quickly see this as profit from business or result from other activities. In that case, it will therefore be taxed in Box 1. By outsourcing the work to a property management company, you can be sure that your real estate portfolio will fall into box 3 and you will not face any surprises.

Property management by City Estate

Thanks to the unique and innovative approach of City Estate, you, as a real estate investor, are completely relieved throughout the rental process. City Estate ensures that the house is put on the market for the best possible rental price. The search for a suitable and reliable tenant, screening of candidate tenants and signing of the lease are activities that are handled by City Estate. Finally, City Estate will also take care of the daily property management. Monthly rent collections, accepting and handling repair requests and periodic inspections are matters taken up by City Estate. In short, as a real estate investor, you can enjoy a carefree return on your real estate. More information? Then contact us quickly!

06sep

Rent increase not this small for years

The increase in housing rents in the Netherlands has not been this small since 1960. Housing rents increased by an average of 0.8% in the month of July 2021 compared to the month of July in 2020, CBS figures show. The rental price of homes in the free sector rose by an average of 2.2% compared with 0.3% for social rental homes.

The NIS cites the (temporary) legislation regarding raising the rent as the reason. Because of the corona crisis, as of July 1, as a landlord of houses in the social sector you are not allowed to increase the rent. For the free sector, you may not increase the rent of your properties by more than 1% above inflation for the next three years. This legislation only applies to current rental contracts.

When new tenants moved in, the average rent for a property increased 7.2% in July 2021 compared with 9.5% in July 2020.

The extent of the increase varies by city and province. For example, the largest increase was seen in the province of Overijssel with an average of 1.4%. In Friesland, rents even decreased slightly, between 0.1% and 0.4%. Of the large cities, Utrecht had the largest increase (1.6%) and The Hague the smallest (0.8%).

As you read above, determining the rent depends on many different factors, including government policy. City Estate is specialized in renting and managing residential properties throughout the Netherlands. Are you curious about what rental price you can and may ask for your house? We give you free and non-committal rent advice. This advice is based on our experience and the current market conditions. So you know in advance what a market-level rent is.

23Jul

Free sector rents to fall further in Q2 2021

The average square meter price of rental properties in the freehold sector fell in the second quarter of 2021. Compared to the same period last year, rental prices fell by 2%. The average square meter price per month came to €16.37 this quarter. According to Pararius' latest figures, it appears that this is the fourth quarter in a row in which a percentage decline has been measured.

In the four major cities in the Netherlands (Amsterdam, The Hague, Eindhoven and Rotterdam), average rents decreased in the second quarter of 2021. In the city of Utrecht, rents remained the same compared to last year. In Amsterdam, prices have been falling for four quarters in a row now. This decrease is 6.8% compared to a year ago. Not only in the big cities was there a price decrease. Also in many medium-sized cities prices have fallen, Pararius concludes.

Expats

The drop in prices has several causes, including the absence of expats due to COVID-19. The absence of expats is especially noticeable in the larger cities in the Netherlands, where rental properties in the higher segment remained vacant longer. By reducing the rent slightly, you reach a wider target group and the vacancy costs can be limited. This development has had a great impact on rental prices in the big cities. Right now, the expat market is picking up. As more and more people have been vaccinated, companies want more employee involvement again. Similarly, more and more people are working in the office. The Netherlands is attracting expats again but whether it will return to the old level as before remains to be seen.

Tightness in the housing market

There is still a significant housing shortage in the Netherlands. By 2021, the shortage has decreased slightly due to higher construction output and lower demographic growth. Currently, the focus is mainly on building social rental housing. In the Netherlands, the share of social rental housing is already considerably high at 33%. The share of free sector rental housing lags behind at 7%. While there is a high demand for middle segment rentals. Thus, more should be invested in increasing the free sector rental housing. This is confirmed by sources such as De Nederlandsche Bank, the Central Planning Bureau and OECD.

Average square meter price
per month by city

 

City ofPrice per m² per month
National average€16,37
Almere€14,55
Amersfoort€14,40
Amstelveen€17,62
Amsterdam€21,53
Apeldoorn€11,58
Arnhem€12,34
Bergen op Zoom€12,-
Breda€14,35
Delft€15,53
Den Bosch€13,76
The Hague€16,06
Deventer€10,76
Dordrecht€12,68
Eindhoven€14,13
Enschede€11,24
Groningen€14,73
Haarlem€18,18
Hilversum€15,72
Leeuwarden€10,23
Leiden€17,43
Lelystad€14,26
Maastricht€13,73
Nijmegen€14,28
Rotterdam€15,58
Schiedam€13,91
Tilburg€13,38
Utrecht€17,81

 

01Jul

What does a rental agent do?

Are you going to rent out a property? Then it is advisable to look for a suitable rental agent. A rental agent is a personal advisor and mediator who can help you rent out your property. A rental agent can help and support you in finding a reliable new tenant for your vacant property as quickly as possible. Selecting and screening new tenants is generally faster via a rental agent than when you, as a (private) investor, do it yourself.

What does a rental agent do?

The rental agent will begin with a recording of the home. During this recording, the rental agent will look at the condition of the home and professional photos will also be taken for the rental advertisement. The rental price will often be determined by mutual agreement. The rental agent can give you good advice on a rental price in line with the market and in some cases can also draw up a rental price recommendation.

Once the rental price has been determined and professional photos have been taken, the rental advertisement can be prepared by the rental agent. This advertisement will then be published via different platforms. With City Estate we are connected to 20+ platforms, including Funda.nl, Kamernet.nl and Pararius.nl. The number of affiliated platforms may vary considerably per rental agency.

Following the rental advertisement, often dozens of responses from interested tenants will be received by the rental agent. The rental agent makes a selection from these responses and a viewing can be scheduled with the potential tenants who meet all the requirements. During the viewing round, the rental agent can answer questions from tenants and also assess who is interested in and actually suitable to rent the property.
The tenant ultimately selected will then undergo a screening process. How extensive this screening is varies by rental agency. It is important to ask in advance to avoid ambiguity. With City Estate we use an extensive screening in which we cooperate with BKR and Huurcheck Nederland.

Once all the information is correct and the tenant is found to be positive as a result of the screening, the lease can be drawn up. The rental agreement must be legally sound. Once the lease is signed by all parties, the key transfer and check-in can take place. Most rental brokers, including City Estate, will take care of this last part of the process.

Outsource property management

After the key exchange, the rental period begins for the selected tenant. During the rental period, there are a number of issues to be taken care of and the tenant may also come up with questions on repair requests. Many property owners therefore also choose to outsource the daily property management. Depending on your situation and requirements, this may be a good solution for you as well. The activities and tasks that a good property management company will take over for you as a property owner include:

  • Collecting rent monthly;
  • If necessary, proactive debtor management;
  • First point of contact for tenants;
  • Taking and handling repair requests;
  • If necessary, a 24/7 breakdown service for evenings and weekends;
  • Annual rent adjustment;
  • Periodic home inspections.

It is very important to make clear agreements about property management in advance. One property manager will support and pick up more than another property manager. Wondering what we can do for you? Then get in touch with us!

19mei

How can I determine the right rent?

Determining a good rent is one of the most important tasks for renting out your property. The rent directly affects your monthly cash flow and returns. Determining a good rent requires knowledge of the market and depends on several factors. This article will show you how to determine a good rental price for your property.

First you start by assessing whether your property falls within the social or free rental sector. You do this through the Housing Rating System (WWS) of the Rent Commission.

Does my home fall within the Housing Rating System (WWS)?

The property rating system is used to determine whether your property falls within the social or free rental sector. The more points your property is "worth," the higher the rent you can charge. This is also known as the point system.

You may assign points to your home based on various components. The components include:

  • Surface area;
  • Heating;
  • The WOZ value;
  • Facilities present (and the level of finish thereof);
  • Energy Label.

Rent Commission

Through the website of the rental commission you can calculate exactly how many points your house is 'worth'. Is your house below 149 points? Then it is a social rental house and you may not ask more rent than the set rent. Tenants can go to the rent commission to enforce a lower rent if you don't do this. Does your property exceed 149 points? Then your property falls into the free rental sector and you may set the rent yourself.

My property is in the free sector, how can I determine a good rent?

If your property is "worth" above 149 points then you get to set the rent yourself. Tenants cannot go to the rent commission to enforce a lower rent. However, this does not mean that you can just ask for any rent, because a rent that is (much) too high will ensure that you will not rent out your property and will cause vacancy. This is why it is important to ask a reasonable rent for your property, this way you avoid vacancy which will benefit your return.

Determining good rent

To determine a good rental price, it is important to do extensive research on homes that are currently for rent in the area and that have been rented in the area in the past period. It is important here to consider the condition of the property, the size of the property and the number of bedrooms. The (similar) properties in the area are your competitors and it is important not to price yourself out of the market.

Determining the rent depends on many different factors. City Estate is specialized in renting and managing residential properties throughout the Netherlands. Are you curious about the rental price of your house? We can give you a rental price advice without any obligation. This advice is based on our experience and the current market conditions. So you know in advance what a market-level rent is.

17mrt

House votes for longer temporary leases

Last week, the House of Representatives approved a proposal by the VVD to allow longer temporary rentals of housing. The maximum duration of a temporary lease goes from two to three years and there will be a possibility to extend temporary contracts once.

Three years

Currently, the maximum duration of a temporary lease for independent housing is two years. The maximum duration of a temporary lease will go to three years.

Extension and minimum rental period possible

In addition, it will become possible to extend temporary leases of one or two years. This will be allowed once and, as a result, the maximum temporary rental period may not exceed three years. The proposal also states that there will be the possibility of including a minimum rental period in the lease. The maximum length of such a minimum rental period is one year.

Questions or ambiguities?

City Estate is a specialist in renting and managing homes throughout the Netherlands. We are happy to help you. Contact us today to discuss the possibilities without obligation.

Source: NOS

1 2