What to know before renting out your house

If you own a home in the Netherlands and plan to rent it out, there are certain things you should be aware of. Here are some of the key considerations.

Contract length

As of 1 July 2024, the ‘Wet vaste huurcontracten’ has entered into force. As a result, an indefinite tenancy agreement has once again become the standard in the Netherlands. There are certain target groups, such as students or urgent housing applicants, for whom a temporary tenancy agreement may still be concluded for a maximum period of two years. In addition, it remains possible to rent out a property temporarily under a diplomatic clause, if applicable. Read more about the diplomatic clause in our article ‘The diplomatic clause’.

Maintenance

As a landlord, you should be aware of the obligations you have regarding maintenance of the property and what you can expect the tenant to take responsibility for.

A general rule is that the landlord is in charge of fixing large defects. Large defects would include leakage or painting the outside of the house. The tenant is responsible for the smaller defects, such as the replacement of a light bulb, painting inside or maintenance of the garden.

Changes to the house

It is unlawful for the tenant to make any changes in and around the house, unless he or she has permission from the landlord. This means that a tenant has the obligation to undo any changes (that he or she made without permission) before leaving the house.

Right to inspect

In certain situations, a landlord can be held responsible for the behaviour of the tenant, such as if the tenant is involved in illegal drug trade. This means the landlord (or a delegate) should pay attention to what is going on in the house. However, the law forbids the landlord to access the house without an announcement. The landlord needs to announce the visit in advance, preferably in writing. It is advisable for landlords to include the right to access the house in the rental contract as well.

Termination

An indefinite contract may be terminated at any time by the tenant, subject to the agreed notice period. However, while the tenant does not need to give a reason for termination, the landlord does. The tenant enjoys rent protection. Dutch law states that there are certain grounds on which a landlord may terminate a contract (with the applicable notice period), thereby limiting the reasons on which a landlord can end a lease. The grounds for termination by the landlord include, among others, situations in which the landlord urgently needs the rented property for personal use, renovation, or where the tenant does not behave as a good tenant should.

For temporary contracts for specific target groups and for contracts with a diplomatic clause, the landlord must give timely notice of the expiry of the tenancy agreement. If he fails to do so, the tenancy agreement will continue as an indefinite agreement.

Inspection

The tenant has the obligation to leave the house in the same state it was in at the beginning of the rental contract. The landlord can withhold compensation for damage or missing items from the rental deposit, except when it’s due to normal wear and tear. The landlord must have proof indicating the condition of the house. This proof normally comes in the form of photos taken at the beginning of the lease.

It is advisable for landlords to do an inspection with tenants at the beginning and the end of the rental contract. This is important because the landlord must have proof of the condition of the house in order to be compensated for damages.

Questions? More information?

These are just some of the things you should know before renting out a house in the Netherlands. Rental contracts and landlord-tenancy law are complicated and can have long-ranging consequences.

Would you have any more questions regarding leasing of property or other aspects of tenancy law, please do not hesitate to contact us.