As a landlord you can prevent problems with the Rent Assessment Committee
How do you determine the rental price of homes in Rotterdam
Here are some steps that Room Rotterdam Real Estate may follow to determine the rental price:
1. Number of points based on home characteristics:
The basic rental price may be determined on the basis of a number of points. Various features of the home, such as the surface area, presence of extra spaces (such as storage and outdoor space), and luxurious amenities after a renovation after 2016, can all earn points.
2. WOZ value of the home:
The WOZ value, determined by the municipality, can play a role in determining the rental price. This value gives an indication of the market value of the home.
3. Energy label:
The energy label of the home can influence the number of points calculation and therefore the rental price. An energy-efficient home can earn more points.
4. Risks of a low rent in the private sector:
Landlords may be warned about the risks of charging a relatively low rent in the private sector. This may indicate possible limitations and financial risks for the landlord.
5. Provide energy label to tenant:
The energy label must be handed over to the tenant before the start of the rental period. This is not only a legal obligation, but the energy label can also influence the final rental price.
6. Periodic evaluation:
It seems that the energy label must be reissued with every new tenant who moves in. This suggests a periodic evaluation of home characteristics and performance.
These steps indicate a detailed approach to determining the rental price, taking into account various factors to determine a fair and market-based price. Including characteristics such as surface area, luxury, and energy efficiency is in line with common practices in the real estate sector.
This is how you obtain an energy label for your Rotterdam home
To apply for a new energy label, it is recommended to look up a residential energy advisor on Central Register Technology and request one or more quotations. After confirmation of a quote, an appointment can be made with the energy advisor. The energy advisor comes to the home to determine the status based on the situation on site. The owner or representative must be present.
The inspection takes no more than two hours and the advisor examines, among other things, the dimensions, the existing insulation and the existing installations, such as the central heating boiler and solar panels. Our rental agents can advise on possible interventions such as the installation of a new HR boiler, double glazing, facade insulation and possible mechanical ventilation.
Make sure that as much information as possible about the home is available, such as construction drawings, documentation and invoices for improvement measures. The energy advisor calculates and records the energy performance. You will then receive a copy of the energy label. The costs for an energy label are expected to be on average €197 for a single-family home. For apartments the average amount is €98. Ultimately, your energy advisor determines the price of the energy label.
Avoid going to the rent assessment committee
As a homeowner, it is essential to ask the right rent. If a home is actually a home in the social sector according to the law and it is offered in the private sector, the tenant can go to the rental committee to assess the price. If the rental committee determines that the rent is too high, the landlord must adjust the price and perhaps even refund money. There goes your return!
Of course, our rental agents advise on the price that can be asked, but the owner is ultimately responsible and determines the rental price. The municipality of Rotterdam has a handy tool to calculate the correct permitted basic rent. To increase the value of the house, our real estate agents can advise you to make a small adjustment, such as installing more tiles in the kitchen and bathroom, or installing a longer countertop in the kitchen.
The duration of the contract is also important. There is a difference between a fixed-term contract and an indefinite-term contract. With a fixed-term contract, a tenant can object to the rental committee up to 6 months after the end of the lease. The difference of the full term must be paid by the lessor.
With an indefinite-term contract, a tenant must report this to the rental committee within 6 months after the start of the rental agreement. If the tenant is successful, the landlord must retroactively pay the difference and the rent must be changed.
The vast majority of the houses that Room Rotterdam Real Estate rents out are furnished and equipped, for example, with a television, which means that on average more rent can be charged. This concerns service costs, i.e. the use of furniture, curtains and floors, for example. If the furniture is not older than five years, 21% of the original purchase value may be charged annually in the service costs.
If the items are older than five years, you can take 21% of the current value as a starting point. That is the amount that the furniture and/or upholstery would yield if you were to sell them now. For appliances and components with a long lifespan such as refrigerators, stoves and laminate floors, a period of ten years applies. The new value may therefore be taken as a starting point for ten years.
Ask our rental agents about the correct contract duration for renting out your home. We are happy to give you independent advice.
Right rental price for a Rotterdam home
Nowadays, more and more parties approach tenants and guide them to the rent assessment committee if they suspect that a tenant is paying too much. It is therefore important to ask for the correct rental price. To be absolutely sure that the required number of points is achieved, we recommend having a professional scoring carried out.
Increase points and rent
If the property does not (just) exceed the liberalization limit or if you want to charge more rent, it is possible to make adjustments yourself or have them carried out. For example, a dormer window or a conservatory can be installed to make the home more spacious. Installing heating in rooms that are still unheated.
It is also worth decorating the bathroom and kitchen. This could easily result in a doubling of the points. Making the home more energy efficient, for example through insulating glass, is also an option. Decide in advance how much you want to invest and whether the return is still worth it.
In addition to the fact that an energy label is mandatory from 2021, there are a number of changes. The annual maximum rent increase for all rental properties is set at inflation + 1% (also in the private sector). A temporary rental contract may be extended once in 2012. A transfer tax of 8% will also apply to the purchase price of a home.
Returns from Rotterdam rental properties via Room Rotterdam Real Estate
Despite these adjustments, it is still profitable to invest in Rotterdam homes for rent. The city is still attractive to expats and foreign students and private individuals already living here are increasingly finding our offer. So there are more and more candidates for the available homes.
Please contact us if you want to rent out. Our real estate agents can give you sound advice through our extensive experience, network and knowledge of the Rotterdam housing market. Do you have any questions about purchasing a home? Then our purchasing agent may be able to help you.