Investing in a rental property can be a great way to build long-term wealth and generate extra income. However, buying a property to rent out in the Netherlands involves specific rules, mortgage types, and financial planning. Here’s what you need to know before you get started.
Determining your budget
The first step in buying a rental property is to determine your budget. In the Netherlands, you need a rental mortgage (also known as a buy-to-let mortgage), specifically designed for this purpose.
The market value of a property in rented condition is often lower than the value of a comparable home that’s free of rent. The maximum mortgage amount is usually between 70% and 90% of the property’s rented value.
This means you’ll need to contribute a portion of your own funds — either from savings or the equity of your current home — to complete the purchase.
Example calculation
Suppose the property you want to buy costs €300,000, and you expect an additional €30,000 in purchase costs. The total required investment is €330,000.
If the property’s market value in rented condition is €250,000, and you can borrow up to 80%, your mortgage will be €200,000. In this example, you’ll need €130,000 of your own money to cover the total cost.
Comparing lenders
Different mortgage providers have different terms and conditions for rental mortgages. They may vary in:
How they assess your income
How much of your (future) rental income they include
How they calculate the maximum loan amount
Because of these differences, it’s smart to start with an orientation meeting with an independent mortgage advisor before you dive into the rental market.
Finding a suitable property
Once you’ve determined your budget, the next step is to find a buy-to-let property.
Finding a good investment property can be challenging, especially in the current housing market. You can look on your own, but if you’re new to real estate, it’s wise to work with a real estate agent who understands the local market.
An experienced agent can help you:
Identify promising properties
Negotiate the right price
Review existing rental agreements to avoid a poor investment
If you’re looking at an apartment, carefully read the regulations of the Owners’ Association (Vereniging van Eigenaren, or VvE). Some associations don’t allow subletting, even if you fully own the property.
Starting your mortgage application
Once you find a suitable property, contact an independent mortgage advisor as soon as possible.
During your first meeting, the advisor will estimate your borrowing capacity based on your financial situation and property details. When you’ve chosen a lender, you’ll need a valuation report prepared by a certified appraiser.
As soon as the valuation report is ready, your advisor can give a definitive mortgage recommendation, and your application can proceed.
Renting out the property
After your mortgage has been approved and finalized, you can start renting out the property.
The valuation report usually includes an estimated market rent, but you can adjust it based on your goals. If you don’t yet have a tenant, define clear tenant requirements. A common rule is that the tenant’s gross monthly income should be 3 to 5 times the rent. For example, if the rent is €1,000 per month, the tenant should earn between €3,000 and €5,000 gross per month.
It’s also common to request a security deposit equal to one or two months’ rent.
Managing your property
As a landlord, you’ll be responsible for maintenance, repairs, and general property management. Expect to handle:
Maintenance requests and repairs
Administrative work (such as rent receipts and service costs)
Tenant communication
If you prefer not to manage these yourself, you can hire a property manager. This service costs money, but it can save time and stress — and it’s especially worthwhile if you plan to rent out multiple properties.
All expenses related to your rental property are part of your operating costs, which directly affect your return on investment. Always calculate your expected net return carefully before committing to a purchase.
For more information or personal advice, contact one of our mortgage advisors. We are happy to help you explore your options and find the right mortgage solution.
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