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:

• 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.