Renting out your owner-occupied home: what are the rules?

Are you moving abroad for a while, or are you going to live together? Then you might be thinking about renting out your home. You may even want to buy a second home specifically for rental purposes. But beware: renting out an owner-occupied home is not allowed just like that. Do you want to know how to arrange this? Then read on.

Rent out a house with a mortgage

Is your home mortgage-free? Then you only have to deal with the rules of your own municipality. You are also free to rent out the house.

If there is a mortgage on your home, the mortgage deed almost always states that rental is not permitted. You then need permission from the bank, even for room rental.

You don't just get that permission. Mortgage lenders would rather not do this because rental is often detrimental to the home value. Because what if tenants neglect the home? Or you want to sell the house and cannot evict the tenants? Then the house will yield less money.

Why not rent it out secretly? That is not wise. If the bank finds out that you are renting out the home without permission, this could cause you serious problems. You will receive a note that prevents you from simply taking out the next mortgage, and if you cannot evict the tenants in time, the bank can even demand the entire mortgage.

But when can you rent out your home?

Low risk consent

The less risk the mortgage provider runs, the more likely they are to agree to rental. They mainly want to protect their own interest in the home.

This makes it easier to obtain permission for temporary rental than for indefinite rental. With temporary rental you run no risk of problems with evicting the tenants, should something change in your situation.

Even if the mortgage debt is considerably lower than the current home value, the bank is more likely to agree. They do not have to worry about making a loss on the loan when you eventually sell the home.

Renting out a home via the Vacancy Act

An easier option is rental via the Vacancy Act. This is possible if your house has been empty for a long time, for example because it is for sale. When renting via the Vacancy Act, there are far fewer rules for rental protection. The home must then meet one of these criteria:

– It is a new-build home
– The house has been rented out for a maximum of 10 years in the past 3 years
– You lived in the house yourself for at least 12 months

You also need a permit from the municipality and, of course, permission from the mortgage provider. There is also a maximum rental period. This way there is a greater chance that your bank will agree to the temporary rental.

Renting out a house when emigrating

You can also rent out your home when you temporarily move abroad. You will also often receive permission from the mortgage provider. This concerns temporary rental contracts of maximum 3 years.

If you live abroad, it can be difficult to arrange the rental yourself. You can then engage external parties, such as a real estate agency, to manage the rental for you.

Renting out a home with a rental mortgage

The last option is a rental mortgage. You take out this specifically to rent out a home. The bank usually requires a higher contribution and you pay more interest, but you then have the freedom to rent out the home indefinitely.

Are you going to buy a house to rent out? Then this is the smartest option.

Renting out your owner-occupied home: what are the rules?