Checklist for Renting a Property to Expats

Expats The Hague

In the Netherlands, many expats choose The Hague to live and work. Why do expats do that? What are the benefits for these expats?

Renting a House to Expats in The Hague

Landlords prefer renting their homes to expats because the financial dealings usually go smoothly. Renting your property to expats in The Hague or Wassenaar can therefore be profitable for you.

What is an Expat?

Expats are people who come to live temporarily in the Netherlands. They are often sent by a company or international organization to fulfill a specific role. In The Hague, there are many international organizations, and in Amsterdam and The Hague, there are numerous international headquarters of multinationals.

What is a Rental Agent?

A rental agent is an intermediary between property renters and landlords. A rental agent works on behalf of the landlord. The rental agent takes care of:

Promotion
Viewings
Rental contracts
Screening potential renters

Rental agents in cities like The Hague and Amsterdam are familiar with expats and often have a large network to quickly match property owners with expats looking to rent.

Renting a House to Expats in The Hague

People who come to the Netherlands for a short stay in The Hague all need a home to live in. Since it is almost always a temporary job, it usually involves a rental property. Expats are often highly educated people from abroad who come to perform specific tasks for a company for a certain period or on a project basis. They often bring specialized knowledge that is not adequately present among Dutch employees, especially in IT-related fields. In insurance companies, for instance, it often involves actuaries.

Expats in The Hague

Expats are not always looking for the largest and most expensive homes. While there are regular arrivals of executives from abroad, most are expats in middle management roles. Therefore, various types of properties are very attractive for renting to expats.

Renting in The Hague to Expats Checklist

With this 'Rent Your House to an Expat Checklist,' you can determine if your property is suitable for renting to expats. It provides insight into what you should consider when renting your home to expats.

1. Make Your Home Suitable for Renting to Expats

The location, the number of bedrooms, and whether your property is furnished or not, largely determine whether the expat is interested in your home. If your property has deferred maintenance issues like an overgrown garden or broken items, making small improvements can make your property more attractive. Consider painting, cleaning, tidying up the garden, and providing new towels. In this way, you increase the chances that an expat will want to rent your property temporarily.

2. What Do Expats Actually Look for in a Home?

Expats often expect a home with modern appliances and amenities. Convenience and comfort are important after a hard day's work for an expat. Consider including features such as WIFI, a smart TV, dishwasher, microwave, coffee machine/espresso machine, and a washing machine/dryer. Expats typically prefer a modernly decorated home in a neutral style with a fresh look.

3. Be Flexible With Offering Furnished or Unfurnished Housing

The needs of an expat often depend on whether their family accompanies them to The Hague. Be flexible in this regard. Certain furniture items can be stored in a warehouse if necessary. Did you know that The Hague is considered one of the most beautiful cities in the Netherlands for living and working by expats?

4. Take Photos of the Property and Its Contents

Especially if you are offering a furnished and decorated property to an expat, it is important to photograph everything for the rental period. This prevents conflicts if something breaks in or around the property during their stay. To accurately document the condition of the property, you can use an inventory list, which is part of the rental agreement, supplemented with photos at the time of key transfer. You can also include a report detailing the condition of the property.

5. Living as an Expat in The Hague From Abroad

Preparing your home for an expat rental requires consideration. Remember that an expat may come from a different culture, with different customs, habits, and expectations compared to what is usual in the Netherlands. Despite the 180 cultures living together in The Hague, it is also beneficial for neighbors to know who is temporarily living in your home. Discuss with your specialized rental agent under what conditions and to whom you wish to rent your home.

6. Determine a Fair Rental Price for Your Property

Determining a fair rental price for your property is best done with a knowledgeable rental agent. They have a broad market knowledge, allowing them to assess what is a fair rental price for your home. Overcharging has become much more challenging in recent years due to greater market transparency. The costs of living are not always paid by the employer of the expat coming to the Netherlands. Expats often look for affordable homes between €900 and €1700 per month. However, there is certainly a demand in the "Randstad" for higher-priced properties between €4,000 and €10,000 per month. The rental value of your home depends on many factors, which your rental agent can explain to you. They can also provide tips on increasing the rental value.

7. Set a Rental Period

Expats typically come to the Netherlands for a temporary period. This means that most expats, for example, come to work and live in the Netherlands for 6 months or 1 year. During that time, they usually do not want to move from one home to another. Therefore, it is common to receive requests to rent for a half-year or 1-year period.

8. Determine a Fee for the Use of Moveable Goods

Expats often prefer to rent furnished homes. This means that the landlord can charge a fee to the tenant for the use of the moveable goods.

9. Determine Who Pays the Monthly Rent and Security Deposit

This varies by case. Often, homes are rented directly by expats, who are then responsible for paying the rent and the security deposit. However, there are also situations, often in the higher segment, where the employer rents the property for the expat. In this case, the employer is responsible for the rental payments and the security deposit.

10. Financial Check of the Tenant

Checking someone's financial background by requesting recent pay slips can be unpleasant. A good rental agent will handle this for you. The agent often also ensures that the first month's rent and the deposit (usually one or two months' rent) are paid directly to them. Subsequently, the agent transfers these amounts to your account, minus their own mediation fees.

11. Rental Agreement Is Important When Renting Out a Property in The Hague

Make clear agreements with the expat tenant about the duration of their rental period and include this in a rental agreement. An English explanation should not be missing so that the conditions are clear. Matters such as maintenance, no pets allowed, and hanging wall decorations can also be included in the contract. The rental agreement should be drawn up in both English and Dutch. Ensure that your rental agent is a member of an industry organization like the NVM. The Hague Real Estate Services is an NVM agent based in The Hague.

12. Diplomatic Clause

You can include a diplomatic clause in your rental contract. Using the diplomatic clause, also known as the eviction clause, allows a landlord to rent a property temporarily. This clause is not mandatory for temporary rentals. However, it is highly recommended to include the clause in the rental contract. Especially if the landlord previously lived in the property and wishes to move back after temporary rental. The same applies to a tenant who temporarily leaves and wishes to return to the property after a period. The landlord or tenant must have lived in the property and return to it after the temporary rental period. A new-build property can be rented out temporarily directly. The landlord must live in the property again after that period.

13. Be Aware of the Applicable Laws and Regulations

It may occur that you need to rent your property temporarily abroad, cohabit, or provide care. One option could be to temporarily rent your house or apartment. However, you quickly encounter laws and regulations. In principle, temporary rentals are not possible in the Netherlands. Once a tenant occupies a property, you are subject to tenant protection laws. This means that as long as the tenant fulfills their obligations, the rent cannot be terminated. There are, however, exceptions, allowing you as a private individual to rent your property temporarily legally. Below are some rules that are important for you.

14. Private Property Rental in The Hague, Voorburg, or Wassenaar

Renting out your property privately is a big step. As a landlord, you want everything to be legally well-organized. You can rent your property legally as a private individual through house-sitting, trial cohabitation, and the Vacancy Act. These rules allow you as a private individual to legally rent your property without creating tenant rights. This means that the tenant must leave your property after the rental period. If you do not follow these rules, you run the risk of permanent rental. Legally renting your property privately is possible through house-sitting, trial cohabitation, or the Vacancy Act. The Vacancy Act is only possible for an owner-occupied property. The property must be clearly for sale, and you must apply for a permit from the municipality. Renting through house-sitting or trial cohabitation is possible for both owner-occupied and rented properties. Both requests must be reported to the municipality. If you have a rental property, the owner's consent is needed.

15. Insurance

When renting out your house or apartment privately, you run risks of damage. This could be damage to your property or contents. When renting out your home furnished and/or decorated, there can be damage to your furniture. In some cases, insurance companies do not allow temporary rentals due to the extra risks. Therefore, it is important to check the conditions of your insurance. To minimize risks, it is advisable to have the tenant take out their own contents insurance.

16. Tax and Mortgage Interest Deduction

Renting out your apartment or house privately has implications for your mortgage interest deduction. During the rental, your property falls under box 3. Income from savings and investments. This means that mortgage interest deduction is not possible. As a landlord, you pay income tax on the rental income and the value of your property. If you rent your house or apartment for more than 5 years, you no longer have the right to mortgage interest deduction. If you move back to the house or apartment after renting it out, it will fall back into box 1, taxable income from work and property. You will then regain the right to mortgage interest deduction.

17. End of Rental Period

When the expat wants to leave the Netherlands after a period and returns the rental property, there are a few things to consider. For example, the expat wants to receive the security deposit back. Additionally, TV and internet subscriptions must be canceled, and energy contracts must be canceled. The rental agent is present at the final inspection. The agent oversees the return of the security deposit to the expat.

18. What If a Tenant Stays Shorter Than Expected?

Due to unforeseen circumstances, it may happen that the tenant stays much shorter in The Hague than expected; for example, three months instead of a year. In such a case, you may lose your entire commission. This could mean that you have to pay again to find a new tenant. Most agents have a provision for this. Consider a goodwill arrangement, a discount on the next mediation, or a pro rata adjustment. Carefully review these conditions with your agent. Put your wishes in black and white!

What does a rental agent do for you?

The rental agent creates advertisements and places them on their own website or other platforms. Besides placing the ads, the agent actively approaches potential renters, often through other real estate agents and companies. The agent also conducts viewings. They prepare a lease agreement and walk through the property using a checklist before the tenant moves in. When the tenant moves out, the agent is also present to check if everything remains in the same state as when the tenant moved in.

Responsibilities of a landlord

A landlord has many responsibilities. For example, they must address defects, perform minor maintenance, and be easily reachable for the tenant. As a landlord, you can outsource property management to The Hague Real Estate Services. You must have your insurance in order and notify the insurer that you are renting out the property. You should also be aware of the conditions that may be imposed by entities such as the insurer(s), Owners' Association, mortgage lender, and local governments.

Choosing a good rental agent in The Hague

How many years has the rental agent been in business? The longer, the more experience and the better the (international) network.
Does the rental agent receive good reviews on platforms like Funda or Google?
Do they advertise on websites like Pararius, Xpatrentals?
Does the agent take time to answer all your questions? Do they have expertise in the field?
Is the agent a member of a professional association like NVM? The agent must comply with certain guidelines from the professional association.
Do you have a good rapport with the agent? Does the agent understand the reason for rental? Renting out a property for sale or due to leaving the country requires a different approach than investing in multiple properties with a high return objective.

Does the rental agent offer additional services?

Does the rental agent also manage property? If you are living abroad, you might not be able to resolve issues in your property yourself. You may not always want to rely on friends or family for this responsibility. A rental agent involved in property management has a network of contractors, each with their own specialties.
Does the agent work for the landlord or the tenant? Only the agent who charges a commission to the landlord acts in the landlord's best interests. An agent who does not charge a commission to the landlord works for the tenant and will not necessarily act in the landlord's best interests.
Does the agent help you with setting up the profile of a future tenant? In other words, can you specify your preferences and exclusions? The right rental agent will tell you how likely it is to rent out your property with the conditions you set.
Is an initial meeting with the future tenant standard in the process before a final agreement is made? Do you have influence over who the tenant will be?

A rental agent reduces risks if you want to rent out your property in The Hague

Managing the risks associated with renting out your own property is crucial. A specialized rental agent with knowledge and relevant experience can take a lot of work off your hands. They know where possible risks might arise. The rental agent will protect the landlord from potential pitfalls and provide the right advice. This blog was written by Herman Geertsema, an SEO specialist and Content Marketer at Connect your World in The Hague.

Renting out a property in The Hague

So, do you want to rent out your home in The Hague? This requires some research to find the right rental agent! An informal and informative conversation is the first step towards renting out your own home.

The Hague Real Estate Services, The Hague real estate agent

The Hague Real Estate Services is a full-service NVM real estate agent in The Hague. We are experts in the rental and leasing of homes or apartments to expats in the The Hague region. We are also active as a buyer's and seller's agent. Call Manon de Lange for more information at tel 06-28024077.

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