In the Netherlands, the protection of tenants is properly regulated. The tenant derives his or her rights from the Civil Code. This means that normally it is not easy for the owner to terminate a rental agreement. The vacancy is a regulation that does provide the owner of a (purchase) home the opportunity to rent out the property temporarily.
In many cases, this regulation will be used when the property is for sale for some time and has not been sold yet. When renting through the vacancy law you, the landlord does not have to consider all the rental control provisions, which gives you the option to terminate the rental agreement.
However, the rental agreement should be for at least six months and is subject to a notice period of three months for the landlord. For the tenant, the notice period is up to one month. For rental constriction you must also ask for a permit from the municipality and permission from your mortgage lender.
To be eligible for rental under the vacancy law, your home needs to meet one of the following criteria. It is a living space in a house intended for sale that:
- Has never been inhabited (e.g. construction);
- In a period of at least 12 months before the vacancy of the relevant property, in whole or in part was inhabited by the owner (or when the house was completed less than a year ago, since then was inhabited by the owner);
- In the ten years before the property became vacant, it has only (in whole or in part) been rented out as a living space for three years;
- A living space in a rental house destined for demolition or renovation.
To be allowed to sublet your home according to the vacancy law, there are some things you should take into account:
- Apply for a permit from the municipality;
- Permission from your bank and/or mortgage lender;
- Requirements for the tenant and a modified rental agreement;
- Change in the mortgage interest deduction.
Application at the municipality
To rent your property under the vacancy law you need to request a license at the municipality first. This is possible by using the form ‘Application for authorization for temporary letting of vacant accommodation’. Should you choose this option of rental, we can send this form to you.
Permission mortgage lender
It is also necessary, when you have a mortgage, to ask permission from your mortgage lender. This is important because many mortgage lenders prohibit renting a house, request for a rate increase by rental, or have included restrictive rules in the agreement. If you ask permission, do not forget to mention that this is temporary rental based on the vacancy law, as this gives the lender the assurance that the rental agreement can be terminated.
Requirements for the renter and a modified rental agreement
The tenant must provide several documents, such as an employment agreement, a recent pay slip, a copy of his or her passport, and name and address details. In addition, it is important that the rental agreement is adjusted for rental under the vacancy law. Zuyd Real Estate can ensure that the tenant is carefully screened and that the rental agreement for vacancy is set up in a legally correct way.
Mortgage interest deduction
If you temporarily rent your home, to the tax authority it no longer belongs to box 1 (income from employment and home ownership), but in box 3 (income from savings and investments). This means that there is no deduction of mortgage interest possible from that moment. If the property is out of the rental agreement and becomes vacant again, you may deduct or re-deduct mortgage interest. For more information about the vacancy law, please visit the ‘Eigenhuis’ website (www.eigenhuis.nl).