We have informed you before on our website about the new Affordable Housing Bill, the housing valuation system and that there are new rules for current rental contracts. What can you as a landlord do in the meantime?
- Increase the number of points for your property. As a landlord, you can take advantage of this year's transitional right by investing in your home to raise the point total above 186 points. The government will make this strategy more attractive by rewarding green energy labels more than before. With the right investments, it is often possible to achieve energy label A or higher. Even for energy labels E, F or G, deduction points are awarded, so making it sustainable is also worth the investment in that case. A so-called quick scan gives you insight into the current number of points of your house and the possibilities to increase this number. It is also possible that the WOZ-value of your house has increased over time to such an extent that your house already has 1/3 of the required number of points. A national monument, for example, scores 50 points anyway!
- Find a new tenant for a longer term. Do you currently rent your property temporarily in the free sector and will the rental contract expire soon? Then you should consider actively looking for a tenant who is willing to enter into a long-term contract, for example for three years. With a long-term contract, the tenant cannot terminate the rental agreement, and you are guaranteed rental income according to current regulations. This gives you more time to adapt your real estate strategy to the new rules.
- Invest in the right property to rent out. Are you unable to increase the number of points for your property sufficiently? And will you lose too much rental income because of the new regulations? Then it is time to review your real estate strategy in a more radical way. Depending on the rental contract you have with your tenants, you could decide to terminate the contract (against payment of a lump sum) and sell the property (if necessary, with tenants). This gives you the opportunity to invest in another property for rental.
No reason to panic, then. Instead, contact us today; together we will discuss the best rental strategy for you.
In this scenario - as well as for new real estate investors - two aspects of the new regulations are particularly important:
1️. Invest in new construction. New construction homes that fall in the middle segment will soon be subject to a 5 percent rent surcharge that will remain in effect for 10 years. Thus, these homes may be rented at the regulated rent plus 5 percent. This price surcharge will apply to all new construction homes completed after Jan. 1, 2024, where construction began before Jan. 1, 2025.
2️. Value outdoor spaces more. If you plan to rent in the freehold sector, it pays to look not only at the energy label, but also at the property's outdoor spaces. Outdoor spaces will soon be worth more points.
The consequences for you as a (starting) landlord Let's be clear: the Affordable Housing Bill does not make things easier for landlords. But if you're just starting out in real estate investing - or are a seasoned landlord - you can use knowledge of the new regulations to your advantage.
Find out how you can anticipate the changes and get the most out of your real estate investments. Read our blog on the Affordable Housing Bill and the housing valuation system and take action for the future of your rental properties.
Jeroen Haring of Haring Verhuurmakelaar is happy to tell you in detail about this in a personal and non-committal introductory meeting. We keep a close eye on developments in the rental housing market and will gladly provide you with tailored advice. We prefer to think in terms of possibilities rather than limitations!
A new service from us now that the temporary rental contracts are being abolished.
Consider "temporary" renting to Haring Verhuurmakelaar, your broker, tenant and manager in one. This way you have guaranteed monthly rental income, no vacancy and we provide management at no cost. Your property will be rented by us to our network, which consists of screened and reliable tenants who only want to rent temporarily. These multinationals, expats or other "temporary": house hunters (new construction/ renovation) are already in our network and we will make the best match for your property. After each change of tenant you can decide if you want to continue renting or do something else with the property. Very flexible and in accordance with new legislation.