Can You Rent Out Your Owned Home?

Can You Rent Out Your Owned Home? Here Are the Rules You Need to Know

Renting out your owned home might seem appealing, whether you’re relocating temporarily or your property has been on the market for some time. However, it’s important to understand the rules and regulations before you hand over the keys to a tenant. What’s allowed, and what isn’t?

When Is Renting Out Your Home Not Allowed?

If your property is still under mortgage, you’ll need permission from your mortgage lender. Lenders have a financial stake in your property and won’t always agree to rental arrangements. Without their consent, you risk severe consequences, such as the immediate demand for full repayment of your loan or even financial penalties.

When Is Renting Out Your Home Possible?

• Relocation Abroad: If you’re moving abroad, your lender may grant permission for rental under specific conditions. Often, this includes a diplomatic clause in the rental agreement.

• Vacancy Law: If your property is vacant and has been listed for sale for an extended period, you may be eligible to rent it out temporarily under the Vacancy Law. This requires approval from both your mortgage lender and a permit from the local municipality.

• Buy-to-Let Mortgage: If you’re purchasing a property specifically to rent it out, consider applying for a buy-to-let mortgage. Keep in mind that these often come with higher interest rates and may require a substantial down payment.

• Mortgage-Free Property: If your mortgage has been fully paid off, you’re free to rent out your home as long as you comply with general rental regulations.

Key Considerations When Renting Out Your Property

Renting out your home without your lender’s consent can lead to serious financial and legal consequences. Additionally, tenants in the Netherlands are well-protected by law, which can make ending a rental agreement challenging. To avoid complications, always ensure rental agreements are clear and legally documented.

Are you considering renting out your home? Contact your mortgage lender and local municipality to arrange the necessary permissions and permits. For tailored advice, KIJCK. Makelaars is here to guide you through the process with personal and professional support.

Renting out your home can be a great solution, but it’s essential to make informed decisions every step of the way.

Would you like to explore your options? Schedule a no-obligation consultation with KIJCK. makelaars today and discover how we can assist you in renting out your property!