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Netherlands Information · Joined: 21 Oct 2006 Posts: 20 Home Country: netherlands

HOUSING IN NETHERLANDS

RENTAL MARKET

There is a chronic housing shortage in the Netherlands. And the obvious, long-term solution to the crisis is to build more homes. But this remedy does little to help expats forced into the more expensive end of the market due simply to their immediate need for furnished apartments. This is where sky-high rent is the norm, rather than the exception.

Dutch nationals, however, who are primarily found in the unfurnished housing market where rents are under EUR 550 per month, have to wait on average up to two and a half years for a rental house.

Thus, expats pay to beat the waiting list.

A spokesperson with the Amsterdam Huurteam, a renters advocacy group, recently said the "chronic shortage of accommodation available to foreigners" plays a large role in landlords being able to effectively charge what the market can bear.

The problem has contributed to Amsterdam accommodation costs surpassing those in Paris, Brussels and Munich, with top rental prices ranging from EUR 1,250 to 6,800.

The situation in Utrecht is only slightly better than in Amsterdam, with a surplus number of houses contributing to slightly lower rents, but in Groningen the expat market is extremely tight and rental prices are at their maximum.

Cheaper Eindhoven houses are scarce, but furnished — and hence more expensive — expat houses are always available, while in Rotterdam, demand is greater than supply.

Most expats fall into this high demand, high priced and liberalised sector of the housing market where the maximum allowable rent — based on a complex points system for size, location, amenities, etc — is above EUR 541.36 for contracts starting from January 2001 and EUR 565.44 for contracts starting from January 2002.

The nation's 52 rent commissions — plus the Amsterdam and Rotterdam huurteams — help people in all areas of the housing market determine the legally allowed rent for their accommodation.

Many expats are not aware that if they pay an all-inclusive price — which includes rent, furniture and/or energy — they qualify for assistance from the rent commission at any time. (Other renters need to request a rent commission test within six months of signing their rental contract.)

Hence, word-of-mouth is key to ensuring expats know their rights under Dutch housing law. Multinational expat-employing companies and HR departments need to take a more active role in passing this information along to their expat workers.

But most importantly, the government should force landlords to register their apartments or subletting arrangements with a centralised rent commission, allowing for greater supervision of the liberalised market.

This system also means landlords will have to substantiate their rent demands when registering their accommodation and the government can maintain greater regulation and control. Random checks can also be carried out.

In addition, more huurteams are needed in other cities around the nation to keep tabs on the lower-cost housing market.

The nation's rent commission currently works on a request-only basis, but this system has obviously failed to keep rental prices down.

Reform of the system, plus obligatory policing, is urgently required.

Expats can obtain assistance from the rent commissions by calling 0800 488 72 43.

GETTING STARTED

For short-term expatriates, rentals available from housing corporations are not an option. These are low to middle-income housing that are rent-controlled and require that you fulfil certain income conditions. Recently plans have been developed to liberalise the rental market that will have a large impact on this housing, but it will take another several years before it happens. Also, Amsterdam is currently excluded.

Waiting lists at the moment, depending on the area, are from two years all the way up to 20 years, after registration with a housing corporation. Also, to be eligible for one of these apartments you must have a woonvergunning, or permission to reside, from the city housing department or Stedelijk Woning Dienst (at City Hall).

In general, if the rental price falls under EUR 486.30 per month, the accommodation is almost certain to belong to a housing corporation.

Beware, some people who have contracts with housing corporations sublet, particularly to short-term visitors, at highly inflated prices. If you rent a property under these circumstances, you may have little or no rights and it can make it impossible to register at the GBA (Gemeentelijke basisadministratie persoonsgegevens, or municipal register), which will create problems when you apply for other services.

Private landlords and estate agents

If you choose, you can scour the papers for housing (usually in the weekend editions), but many prefer the assurance of working with an estate agent (makelaar). It is often advised you ensure that the estate agent is registered with the NVM, or National Association of Estate Agents.

When you see a makelaar, be sure to discuss the specifics of what you are looking for in accommodation. Be very explicit. It is important to properly communicate your personal needs, as definitions may differ from other countries.

For example: furnished in the Netherlands means that you can arrive with your suitcase and little else, semi-furnished will get the basic kitchen appliances, carpets and curtains, and unfurnished means there is literally nothing in the property, including floor coverings.

Standard contracts can be up 12 pages long in very legal Dutch, so it is important that you trust your agent. Translations are almost always available from reputable realtors and should be requested.

It is standard to pay two months' deposit as well the first month's rent to the landlord, and the equivalent of another month's rent to the agent as a fee. Depending on the monthly rental fees, there can be contract fees of up to EUR 200 for low cost rentals, whereas as higher priced properties will include contract fees in the agents fees. VAT is also payable on the agent’s fee.

In some cases, makelaars who specialise in working with expatriates expect your firm to act as a guarantor for your contract — something some companies object to. It is best to check before you get too deeply involved with a makelaar.

Find out where the nicest areas are

You can do this by walking around, as it is a good way to get orientated and to find out where things are. Its also vey useful to ask people that have been living locally as they usually know where the nicest areas are (and where to avoid). You will be able to find cheap apartments for very reasonable prices, but they will be in areas with a lower quality of living (e.g. higher crime, etc.).

One of the great things about Holland is that is has excellent public transport. Most cities and areas are very well connected with trains, buses and trams. Get your map out and start off visiting as many places as you can. You will quickly start to get a good picture of what is available and what you want /can afford. Pay special attention to public transport options nearby for getting places, as you will find this important later on.

RULES TO RENTING

* Many Dutch people with a subsidised apartment will try to rent it out to foreigners at a higher price. Not only is this practice illegal, but it makes it impossible to register yourself at the town hall (only one tenant or family is permitted per address). This could cause difficulties in obtaining a residence permit, telephone, parking space, etc. Rent these apartments at your own risk.

* It is standard to pay first the month's rent plus a deposit of one or two months' rent to the landlord. To protect yourself from unscrupulous landlords and reduce the chance of arguments when you leave (eg. broken vs. worn out furniture), have the deposit held by a neutral third party, such as your agent, and try to keep it to only one month's rent.

* Agents generally charge one month's rent as their fee. Sometimes they will charge half a month for a six-month contract, if you negotiate with them. There can also be "contract fees" of about EUR 50, but these are petty and should be refused.

* Just because it is possible to park does not mean parking is available. Waits in the inner city of Amsterdam can be up to four years for legal tenants. If your rental includes parking, make sure it says so in your lease and that you can claim a reduction in rent if the parking disappears for some reason.

* Make sure who pays utilities is clear. Often there is a limit and you will be expected to pay anything over it. Of course you will not be offered a refund if you don't use the limit, so be sure to make this clear if you want it.

* Many private apartments are not adequately protected against fire. Ensure your landlord installs fire detectors and at least an escape rope.

* Mice and pigeons are a big problem in urban areas. Ensure your lease covers pest control costs.

* Read the fine print about shared costs. Some landlords will expect you to pay for outdoor upkeep, appliance repairs, shared utilities and even improvements. Make sure you know what's expected.

* You can be sure that when you pay your rent in cash, at the very least your landlord is not paying tax. Worse, there could be no evidence of your tenancy and you could be evicted without warning. To ensure your rights as a tenant are protected, pay via bank transfer (acceptgiro).

* Furnished apartments are treated under tenancy laws similarly to hotels; you can be evicted on short notice. Unfurnished apartments provide you the full protection of the law, which can be quite favourable to tenants. For example, you are entitled to deduct rent or to claim repair costs if the temperature cannot be maintained at 20 degrees in the winter.

* For expats not used to radiators, they can be a rather uneven source of heat, but "central" heating does not exist. Beware also of apartments where the only source of heat is a gas or electric space heater.