Rentals Archives - Page 2 of 2

10mrt

7 Tips to get your home rental-ready

If you are going to rent out your property, it is important to prepare the property for renting. With a good preparation you will ensure that the property will be rented faster, there will be fewer problems during the rental period and the tenant will feel comfortable and safe in the property. To get your home ready to rent, we have compiled 7 tips.

1. Laws and regulations

If you plan to rent out your house, you need to take into account various laws and regulations. Each municipality has different laws and regulations. We advise you to read up on them in advance or let us inform you about them. Things you should take into account are: permit to let rooms, obligation to live in your own home, landlord's permit and rent determination according to the WWS of the Rent Commission.

In addition, when renting out your property, you also have to take into account some formalities and agreements with, for example, your mortgage lender, insurer and VvE. In most cases, additional conditions apply when renting out a property. It is advisable to contact your insurer and mortgage provider in advance so that they are also aware of your rental plans. If there is also an Owners' Association (VvE) in place, in almost all cases they will require notification of the rental.

2. Maintenance

It is strongly recommended to maintain the property you want to rent out. When you leave the property management to us, we can (if desired) completely relieve you of this task. Our experience is that a well maintained property is rented out faster, causes fewer problems during the rental period and ensures satisfied tenants.

3. The eye wants something, too

Neat tenants look for neat homes. Therefore, it is important that the property is neat and clean. For example, make sure the paintwork looks tight, the baseboards are fixed and the toilet, kitchen and bathroom are clean. In order to rent the property so quickly, it is also important to take nice pictures of the different rooms in the property. However, the photos should be realistic where the actual condition of the property is clearly visible. If this is not the case, there is a big chance that during the viewing round many potential tenants will drop out.

4. Keys and locks

An extra check on the hardware is advisable. This is often skipped but can cause problems during the rental period. Make sure there are enough keys for the tenant(s) and that the locks and hinges are of good quality. This prevents break-ins resulting in damage and also makes the tenants feel safe. Above all, do not forget to have extra keys made for yourself and for a broker or manager. During the key exchange with the tenant, it is advisable to make clear which key belongs to which lock and note the number of keys issued. This way, there will never be any ambiguity after the rental period ends and you as the landlord can be sure that you have received all keys in return.

5. Cleaning

As mentioned in tip 3, tidy tenants look for tidy homes. Therefore, clean your property properly or have a professional do this before handing over the keys with the tenant. You can also include in the rental agreement that when the tenant leaves the property, they must leave it clean and tidy again.

6. Space

For many renters, the space of a home is an important factor. Therefore, it is important to ensure that the home looks as spacious as possible. Make sure there is plenty of room to walk through the home. Free up as much floor space as possible. For example, remove a large closet that makes a bedroom look instantly larger.

7. Viewing

Once your property is completely ready to rent, it's time to hold viewings. Take your time for this and give prospective tenants room to view everything. We recommend removing personal belongings. When organizing group viewings, it is also wise to put away valuables. You cannot always keep an overview in such a case and potential tenants can quickly take a laptop or phone.

Don't have time to take care of everything yourself? 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.

20feb

Landlord permit Rotterdam

As of January 1, 2021, the City of Rotterdam has begun introducing a permit for landlords of residential properties. This means that it will be mandatory for those properties in question to apply for a landlord permit. The City of Rotterdam has chosen to do this so that abuses in the private rental market in Rotterdam can be ended.

Initially, this is a pilot in the Carnisse neighborhood. In this district, the municipality has found that there are many problems. If this pilot proves to be a success, the municipality of Rotterdam will use this permit citywide.

Housing Market

The municipality of Rotterdam has found that in several places in the city the housing rental market is not doing well. There is overcrowding, intimidation, housing and address fraud, discrimination, housing nuisance and in some cases even exploitation of tenants. There may also be illegal use of a property, such as by hemp cultivation or prostitution. The municipality of Rotterdam notes that in many cases, people only stay in these homes for a short time, causing the social bonding and safety in a neighborhood to deteriorate.

Preventing abuses

By introducing a landlord permit, the City of Rotterdam hopes to prevent abuses in the rental market. First, landlords of properties where abuses have been found before will receive a warning. Once you as a landlord have received a warning, you will be given the chance to still resolve the abuses.

Does the landlord ultimately not resolve the abuses? Then the municipality of Rotterdam will designate the property and you, the landlord, must apply for the landlord permit. In that case, the property may not be rented out without a landlord's permit. When the landlord receives a landlord permit, then the Rotterdam Municipality will check for compliance with the conditions. If the conditions are not properly complied with, the municipality will impose charges under penalty, these start from €10,000. Does that not help either? Then you as a landlord can lose the landlord permit, which means you are no longer allowed to rent out the property.

18feb

The 5 most frequently asked questions about renting out your home

Because many (new) landlords run into mostly the same questions, we've listed the top five most frequently asked questions for you.

1. What must be present in my house if I want to rent it out?

First of all, you will have to decide whether you want to rent the property unfurnished or furnished. This choice depends on the target group you want to approach, the location of the property and your budget. Is your property on Marktplaats, for example? Then you will reach a totally different target group than if your property is listed on 'I am Expat'.

2. What if the tenant does not treat the house properly or pays poorly? And what is City Estate's role in such a situation?

We will not enter into a rental agreement with a (potential) tenant until that person successfully passes our extensive and thorough screening process. The screening we do at City Estate goes far beyond a simple credit check. Our screening consists of more like 10 steps. Thanks to this thorough screening, we have yet to experience any major problems with bad tenants. However, rentals will never be completely risk-free, which even the best screening cannot prevent. For every investment, whether on the stock market or in bricks and mortar, there is a certain return with a certain risk attached.

To keep the risk to a minimum, we at City Estate take a number of other measures in addition to extensive screening. For example, we require a deposit from the tenant as standard. In the event, for example, that the tenant has caused damage to the house, the inventory, or when a tenant has outstanding rent collections at the end of the rental period, we can set this off against the deposit.
In addition, we will conduct periodic inspections of the property. During these inspections we look at the general condition of the house, take meter readings and do an external round. Furthermore, we as City Estate keep continuous contact with the tenant. This ensures that we are often hooked up at an early stage when a certain situation threatens to arise.

3. Do I have to inform my mortgage lender if I rent out my home?

Yes! Most mortgage deeds for a home for owner-occupancy include a clause by the mortgage lender. This clause states that the property must be and remain rent-free. However, our experience is that the mortgage lender often gives permission for rentals, provided the rental conditions are correct and everything else is properly arranged. If you have any questions about this, please feel free to contact us.

Homes purchased as an investment with a mortgage, the above often does not apply. In most cases, an "investment mortgage" is then used, which already includes permission to rent.

4. Do I have to pay taxes on the rent I receive?

We are not tax consultants and every (personal) situation is different. For that reason, we must always be careful about giving general advice. However, we can tell you how it is regulated in most situations. The general rule is that a property moves from box 1 (work and home) to box 3 (capital) as soon as you start renting it out. This is because, by definition, you as the owner no longer live in the home yourself.
In box 3, you are not entitled to mortgage interest deduction, but must pay wealth tax on the value of the property (based on WOZ) minus the mortgage debt. In 2021 the box 3 system will change, which means that in the future you will have to take into account different rates at which your assets will be taxed. Incidentally, the tax authorities require that little or no labor be performed in relation to rental and management. By working with a real estate partner such as City Estate, you meet this requirement of the Inland Revenue.

5. Can I terminate the lease if I want to stop renting?

Whether you can terminate the lease depends very much on the type of lease agreement used and what clauses it contains. Tenants are very well protected in the Netherlands through rental law.

Type of leases and termination options:

Standard indefinite rental agreement

This rental agreement is usually used by investors with 1 or more properties who basically do not live in the property themselves. The agreement usually starts with 1 year after which it will continue for an indefinite period.
The lease can be terminated from the tenant per calendar month after the end of the fixed period (usually 1 year). For the landlord, termination is more difficult and only with a good reason, for example: tenant does not pay or tenant causes nuisance.

Fixed-term lease with diplomatic clause

Landlords who rent temporarily with the intention of returning to their property later can use the so-called diplomatic clause. This is often used by homeowners who are going to work abroad temporarily. The condition is that the landlord is really going to live in the property again himself.

For all forms of temporary rental, there are many snags and eyes that must be properly stated in the lease in advance. Furthermore, during the lease, renewal, termination or notice must be properly given. If this is not done or done incorrectly there is a chance that the tenant may have accrued rental rights. Once this is the case, termination of the lease will be in jeopardy.

Fixed-term rental agreement of up to two years

Since July 1, 2016, there is a new type of fixed-term rental agreement of up to two years for independent housing. This lease allows a landlord to terminate the lease after a maximum of two years. However, there are some strict conditions attached to this lease. For example, regardless of the length of the agreement, the tenant can terminate per calendar month throughout the rental period. Furthermore, between three months and one month before the end of the lease, the landlord must announce in writing to the tenant that the lease is temporary and that the tenant must leave by the agreed upon end date.

Temporary lease under the vacancy law

If the property is for sale or is to be demolished, for example, it can also be rented out under the vacancy law. If this form is chosen, a vacancy permit must be requested from the municipality in advance. After the first 6 months, the tenant can terminate the lease per calendar month. The landlord has a notice period of three calendar months after the end of the first fixed period.

16feb

Screening of tenants of enormous importance

Proper and accurate tenant screening is essential and of enormous importance. Both landlord and owner do not want to be saddled with a crook who ultimately does not pay the rent collections at all and runs off with the heavens. As a landlord, you also don't want the risk of, for example, a hemp grower who leaves his home severely damaged, damp and polluted once the harvest has taken place. Expert and extensive research into prospective tenants can prevent much misery in advance. Excesses occur in every industry and unfortunately cannot be completely ruled out. Some risk is part of making an investment with a return. However, City Estate is convinced that a good and careful preparation before the conclusion of the lease is very important.

Renting out homes is lucrative and can generate a substantial return. However, it is important to identify the additional risks beforehand. Below we have listed some of the risks you should take into account.

Tenant may neglect or damage property
Tenant can break the law by, for example, operating a hemp farm
Tenant may cause nuisance towards nearby / neighbors
Tenant may run into financial difficulties that result in rent not being paid (on time)

Tenant and landlord enter into a rental agreement with each other that in most cases is entered into for a longer term. It is nice to know that the other party can be trusted and will fulfill their obligations. Extensive screening of a candidate tenant in advance helps to gain this trust.

First contact with tenant

City Estate has contact with prospective tenants even before the actual lease is signed. As soon as a property comes up for rent, prospective tenants will come forward. In most cases, that will be a moment to start the first check of this candidate tenant. Based on the first and last name, information can be gathered through public sources on the Internet (e.g. Google, LinkedIn, Facebook or other social media). Discussing the requirements with prospective tenant by phone can also be useful to get acquainted briefly and form an image of a person.

Providing documents and data

When the first contact with the candidate tenant is positive, this person can be invited for a viewing round. This is also an important moment for City Estate to find out whether there is a match with the candidate tenant. If the candidate tenant is interested and we are positive, more data will have to be supplied. Data we want to receive are:

ID data
Income information (at least 3 recent pay stubs)
Landlord Statement
Contact information in case of emergencies
In case of a temporary lease: backup address

We can then start checking the data provided by the candidate tenant. City Estate cooperates with Huurcheck Nederland to carry out the screening as extensively as possible. Besides this cooperation, we also do a check ourselves. The employer is called, pay slips are checked and compared and it is important to check the cumulative. The former landlord is also called by means of the landlord declaration. These phone calls can reveal whether the 'paper reality' really corresponds to the actual reality.

Selection of tenant

In the end, if the supplied data is correct, the conditions are met and our partner Huurcheck Nederland gives a positive result, the candidate tenant will receive the rental agreement. As mentioned earlier, this screening will never give a 100% guarantee of no hassle. However, we have minimized the risk of hassle by means of an extensive screening process. Are you curious what City Estate can do for you? Are you currently dealing with a bad tenant and would you like to explore the possibilities? Then contact us without obligation!

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