Explanation of the Points System in the Netherlands
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- Kenneth Jefferson
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1 Explanation of the Points System in the Netherlands As a starting point the first thing to mention is that there is a general shortage of residential rental properties in the Netherlands. This especially applies to properties in the Randstad region. That region is basically the triangle which can be drawn between Amsterdam The Hague Utrecht. Therefore the government has applied what is known as the Points System to regulate the rental property industry in the Netherlands. In some areas such as Amsterdam this has always been strictly regulated, and in other areas it is becoming more and more strict as time as time goes by. The Points System rules basically state that properties which do not meet the rules to achieve 143 points or more are not open to the free market ; that is, there is a maximum allowable monthly rental price which can be charged to the tenant by the owner and controls over who is allowed to live there. These rules applied to the occupant mean that the landlord has to obtain the required housing permit for that occupant, and include such as the occupant s salary falling below a maximum income (currently around 35,000 but falling every year). For areas like Amsterdam and region there is first of all a waiting list to which if the candidate is eligible he or she has to apply to sit on. This waiting list is 5 years in most cities but in Amsterdam itself is more realistically 15 years. This sounds extraordinary but has long been very much a reality for dutch people looking to find their own rental home. 1
2 Ramifications of Renting a property which does not meet the Free Market Classification For a homeseeker coming in from abroad at first glance it may of course seem very attractive to be able to obtain a low rent property for your time in the Netherlands. However, the dangers very much outweigh the initial attraction and this is why Renthouse International does not offer these properties to our clients. 1. The local government (Gemeente) in most cities has a team of officials who walk door to door, asking residents to see their rental contract and then asking the resident if he or she is paying too much rent. If the landlord is seen to have rented not conforming to the rules the local government can invalidate the rental agreement and force the occupant out of the property. 2. A number of colleague agents in Amsterdam have had the experience in the past that a large company in the Netherlands following a Homesearch has allowed it s expat employees to rent a property which does not fall under the Free Market classification and for which too much monthly rent is charged. One or more of these occupants then applied to the government stating that they pay too much rent and that the rent should be reduced. The government then looked at forcing a rent reduction but then saw that the occupant never stood in the waiting list process in the first place. At which point the government invalidated the tenancy agreement and forced the occupant to leave the property. 2
3 3. Subsequently because of point 2 above most agents and owners refused to have any dealings with that large company or it s employees; making it almost impossible for the company to find appropriate rental accommodation for it s employees in the Netherlands. How Renthouse conducts business Because of the possible ramifications of renting below the Free Market boundaries Renthouse International applies stringent checks to any property we offer during a Homesearch. Where we take into our own portfolio a particular property we always require the owner to provide us with proof that the property meets the Free Market requirements. Of course we are not the only agent in Amsterdam offering a portfolio of properties. During a Homesearch we also offer those properties offered by other proven trustworthy agents. We are a long standing member of the Association of Rental Brokers Amsterdam. Membership of this association provides a basis of assurance that properties offered to potential clients do meet these Free Market requirements. We do of course also check the properties of other agents ourselves should we be in any doubt. Not all agents live by the rules of course. There are properties we see on a daily basis on websites such as funda.nl and pararius.nl which we know from first sight do not classify as Free Market but which are indeed advertised as such. 3
4 Renting one of these properties through a less trustworthy agent and/or landlord can mean the occupant moves into their new home only to discover as time goes on that there are problems with the property and with the service offered by the landlord and agent which cause large problems. Examples of this we have seen are important maintenance being neglected causing problems like rotting, mould and leakages. An unscrupulous agent or landlord cannot be trusted to maintain the property in a state liveable for the occupant and the occupant is often left with no one to contact and the property being in a dangerous and unliveable condition. We have also seen in the industry a lot of financial fraud by unscrupulous landlords and agents. The ramifications may be as simple as the landlord refusing to return a deposit but it could also entail their using the occupants details to commit larger financial fraudulence. We always urge potential renters in the Netherlands that if you see something which appears too good to be true, walk away. There is always something in the background as a reason for an absolute Bargain. As a last point always be wary of agents who advertise properties on behalf of the owner but then ask for a commission or finders fee when a potential tenant reacts to the advertisement. 4
5 The Homesearch services and fee charged by Renthouse International are all based on our representing you and your best interests as a prospective tenant in the Netherlands. These services include : researching your requirements and wishes, finding properties which match those as closely as possible, screening of all properties offered so that you can be sure they are legal, planning your Homesearch trip, advising you to the best of our abilities during the search, negotiating on your behalf to get you the best deal possible organising the payment and check-in procedure offering advice, consultation and support throughout your whole tenancy in the Netherlands assistance and supervision during the checkout procedure at the end of your stay We wish you a successful Homesearch and of course a very happy stay during your time in the Netherlands. 5
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