Facts and myths about letting a property: what’s really true?
In the almost 30 years that Interhouse has been around, we’ve heard it all. Myths, misconceptions and stubborn misunderstandings about letting a property. Some myths come from landlords, others from tenants — and some are even spread by the media. Let’s clear up a few of the most common ones.
Myth: If you let a furnished property, the tenant has no rent protection
Nonsense. This myth likely came about because tenants of holiday homes or short-stay rentals don’t build up rent protection. But anyone renting regular residential accommodation in the Netherlands is entitled to full rent protection — regardless of whether furniture is included or not. The same goes for the rental term: a tenant has rent protection from day one of a regular tenancy agreement, not just after two years as some believe.
Myth: Temporary letting is no longer possible after 1 July 2024
A persistent myth, reinforced by various media outlets. On 1 July 2024, the Fixed-Term Tenancy Act came into force. This limits the use of the ‘classic’ fixed-term contract but certainly does not abolish it. Under certain conditions it is often still possible to let your property temporarily. For example, there’s the story of Tom and Esmée, who wanted to travel abroad temporarily. Want to know more about temporary letting? Read our full blog on the topic.
Myth: Starting 2027, I’ll have to pay tax in box 3 on the increased value of my rental or second property
We hear this one often. There are indeed various proposals regarding the future of box 3, but very few have been finalised. It is possible that capital gains tax will be introduced on the increased value of a second home — most likely based on annual increases in the WOZ (property value). But as these are just proposals for now, there’s no certainty yet.
Myth: If the tenant doesn’t clean the property before moving out, you can withhold the entire deposit
If a tenant hasn’t cleaned the property before moving out, they must first be given another opportunity to clean it. If they fail to do so (within a reasonable time), a cleaning service can be hired. The costs for the service can then be deducted from the deposit — but only the actual cleaning costs, not the entire deposit if it exceeds that amount.
Myth: The rent increase for the free sector is 4.1% in 2025
We hear this one a lot, too often in fact. In reality, rent increases in the free sector are more complex than just the one percentage. The 4.1% is a legal maximum for 2025, not an automatic rent increase. The actual increase depends mainly on what is agreed in the tenancy agreement. Want to know exactly what applies to your situation? Read our detailed blog on rent increases.
Myth: A landlord cannot terminate an indefinite tenancy
Not true. A landlord can terminate an indefinite tenancy, as long as the possibility is not excluded in the rental contract. The landlord, however, must have a valid legal reason to do so successfully. These valid grounds are set out in law and were expanded as of 1 July 2024. Of course, if landlord and tenant agree to end the contract, they can do so at any time, without grounds.
Myth: You’re only legally bound after you’ve signed
According to Dutch law, a tenancy agreement does not have to be in writing to be valid — a written note on a coaster or even an oral agreement can be legally binding. Since the introduction of the Good Landlordship Act, there is an obligation to put the agreement in writing (digitally is also allowed). But this does not affect the legal validity of a verbal agreement. We covered this in an earlier blog.
Myth: Rental income is tax-free — easy money!
In principle, this is true: the actual rental income is not immediately taxed. However, the value of the property is taxed under the box 3 capital gains regime. In recent years, this tax has increased so significantly that many landlords would actually be better off if rental income were taxed instead of the property value. This is by far the main reason many landlords feel forced to sell their rental property. Want to know how this works? Read this blog.
Myth: A tenant can always terminate the contract
Not true. A landlord and tenant are free to agree that the tenant cannot terminate the tenancy during a certain initial period. For some contract types, termination is only possible at the end of the agreed term. Such a ‘fixed term’ where termination is not allowed is quite common — for example, in the first 12 months. It’s important to mentioned that, for a fixed-term tenancy agreement of up to two years (for independent accommodation), it is prohibited by law to include a fixed period that cannot be terminated.
Myth: Interhouse is only a letting agent
Not anymore! Interhouse now offers various property-related services. For example, we have already sold over 150 properties — clear proof that our expansion beyond just letting is real. And this is only the beginning.
Clear facts
Myths and misconceptions about letting a property are everywhere — but the right knowledge helps you move forward. Knowing the facts will help to avoid problems and stay in control of your situation as a landlord. Want to be sure you’re on the right track, or do you have specific questions about letting your property? Our agents are always happy to help.
