What to do if you can't currently get the rent you want?

1-10-2021 — 

Since the beginning of the Covid-19 crisis, most rents have dropped. Especially the less maintained properties were ignored by candidates or brought seriously less rent. Properties that were well maintained were still rented out. Whether or not at a slightly lower price.

Slowly we notice that the rental market is starting to pick up again. More and more travel restrictions are being lifted and, fortunately, more expats are now coming to the Netherlands. Even though the number is still disproportionate to the situation before the start of Covid-19.

In addition, people who would rather buy a house are currently having great difficulty doing so. Moreover, in some cases renting is now often cheaper than buying because of the craze on the buying market. So renting seems to be becoming more attractive again. Or there is simply no other option.

What is sensible?
We notice that for some landlords it is difficult to accept that the market is now a bit disappointing, after years of continuous increase. They do not want to make any concessions and move along with the market. But is that wise? First, it takes longer to find a tenant who is willing to pay more rent for your property than for equivalent ‘competitive’ properties. That means potential vacancy. And vacancy also costs money. In addition, last period we saw that these tenants often gave notice after 1 year because they could rent a cheaper / larger property. So you have first had vacancy (for too long), then for one year you received the highest possible rent. But after the tenants leave there is a new chance of vacancy, the rental agent must be paid again and then there is still the chance that after that year the rents are at the same level. When Covid-19 is finally over we don't expect that, but you never know.

The solution: enter into a temporary lease for up to 2 years
Is it currently not possible to get the desired rent while it was possible before? Then it is wise to accept a slightly lower rent in the current situation and then take out a Model B - temporary lease for up to 2 years. If the situation on the rental market has improved, you can terminate the contract at the end of the agreed rental period. This contract does not necessarily have to be for a period of 2 years, it can also be f.i. 1 year. But do not conclude temporary contracts for longer than 2 years, because then it is still a contract for an indefinite period!
If the situation at the end of the rental period is still the same, you can continue the contract with the same tenant. The contract will then change into a contract for an indefinite period.
There is 1 big disadvantage in this type of contract: the tenant can give notice from day 1 per calendar month.


Picture of Tumisu via Pixabay