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.