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. The homeseeker may even have an agent but that agent may not have the requisite knowledge to guide the homeseeker through the pitfalls in the Netherlands.

However, the dangers very much outweigh the initial attraction and this is why Renthouse International does not do business in the ‘Social housing’ segment.
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 is he or she pays 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.

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 its 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 has 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 sees that the occupant never stood in the waiting list process in the first place. At which point the government invalidated the tenancy agreement and forces the occupant to leave the property.

Subsequently because of point 2 above most agents and owners refused to have any dealings with that large company or its employees; making it almost impossible for the company to find appropriate rental accommodation for its employees in the Netherlands.

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