Buying and renting a house in Rotterdam a lot more difficult due to obligation of self occupancy

Buying and renting a house in Rotterdam a lot more difficult due to obligation of self occupancy

Since Jan. 1, 2022, Rotterdam has been the first city in the Netherlands to ban the practice of renting out a home after purchase without a permit, also known as the buyout protection. The intention of the municipality is to regain balance in the housing market. This raises questions for both tenant and landlord. Can a landlord still sell a property if it is rented out, and can a tenant stay in their rental property? Lawyer Myrthe de Vries, tenancy law lawyer at Lexys Advocaten in Rotterdam, explains what this is like.

Amend Housing Act after bill on buyout protection

The Rotterdam buyout protection is based on the Bill on buyout protection and expanded options for temporary leases which was passed by the Senate on July 6, 2021, and amends the Housing Act as of January 1, 2022. The bill introduces a new permit requirement in the Housing Act. Purchased homes, which were not rented out before the sale, may not be rented out without a permit within four years of purchase.

Housing ordinance municipality of Rotterdam

Municipalities may include in their housing ordinances rules on the purchase of homes after Jan. 1, 2022. When a municipality introduces buyout protection, the municipality must determine up to which purchase price the protection applies and in which neighborhoods. The municipality of Rotterdam has determined that the ban applies to sixteen neighborhoods and up to a WOZ value of € 355,000, -. The neighborhoods concerned are Bergpolder, Blijdorp, Bloemhof, Carnisse, Groot-IJsselmonde, Hillegersberg-Zuid, Hillesluis, Kralingen-Oost, Kralingen-West, Het Lage Land, Middelland, Nieuwe Westen, Oud-Charlois, Oud-Mathenesse, Rubroek and Tarwewijk.

Rotterdam municipality must sometimes grant permit for rentals

However, municipalities are required under the Housing Act to grant a permit for rentals when:

• the housing accommodation is rented to a house seeker who has a blood or affinity in the first or second degree with the owner (first like: father, mother or child. Second degree: grandfather, grandmother, grandchild, brother or sister);
• the owner has occupied the property himself for at least 12 months and then only rents the property for 12 months or less;
• the property is part of a retail, office or commercial building.

Fine from Rotterdam municipality for violation of self-housing obligation

The municipality of Rotterdam, in its Regulation housing market access and housing stock composition 2021 additionally provides that a permit is granted, among other things, when the housing is purchased by (or on behalf of) the municipality itself or a housing corporation. When a landlord rents without a permit, the municipality can impose administrative fines. The fine amount starts at €8,000, - and increases for each violation.

Accommodation rental in Rotterdam

Do you rent out a home in Rotterdam in one of the sixteen neighborhoods designated for buyout protection? If so, you probably don't need to worry. The permit requirement only applies to homes purchased on or after January 1, 2022, and were not rented out at the time of purchase. Therefore, if you are renting out a property, and want to sell that property, there are no obstacles.

Buying rental property in Rotterdam

If you plan to buy a property in rental condition to continue renting out, it is wise to check for what period of time the property has been rented out. Properties that have been rented out for a period of less than six months prior to delivery to the new owner also fall under the prohibition on renting without a permit since Jan. 1, 2022.

According to the explanation of the law, this six-month period applies to prevent the evasion of buyout protection by renting out homes just before the transfer of ownership.

Landlord sells the property you are renting, now what?

If you are a tenant, and your rental property had already been rented for more than six months, the permit requirement will not apply to your rental property. So you can continue to rent with confidence. If you are the first tenant, renting the property for less than six months, and the landlord intends to sell the property, it is wise to check the consequences of the buyout protection. Based on your rental agreement, the risks you face can be determined.

Buyout protection and rental ban in Rotterdam, here's how it is!

Are you a tenant or landlord wondering what buyout protection means for you? Then contact attorney Myrthe de Vries.