Rental Market

There is a chronic housing shortage in the Netherlands. And the obvious, long-term solution to the crisis is to build more homes. But this remedy does little to help expats forced into the more expensive end of the market due simply to their immediate need for furnished apartments. This is where sky-high rent is the norm, rather than the exception.

Dutch nationals, however, who are primarily found in the unfurnished housing market where rents are under EUR 550 per month, have to wait on average up to two and a half years for a rental house.

Thus, expats pay to beat the waiting list.

A spokesperson with the Amsterdam Huurteam, a renters advocacy group, recently said the "chronic shortage of accommodation available to foreigners" plays a large role in landlords being able to effectively charge what the market can bear.

The problem has contributed to Amsterdam accommodation costs surpassing those in Paris, Brussels and Munich, with top rental prices ranging from EUR 1,250 to 6,800.

The situation in Utrecht is only slightly better than in Amsterdam, with a surplus number of houses contributing to slightly lower rents, but in Groningen the expat market is extremely tight and rental prices are at their maximum.

Cheaper Eindhoven houses are scarce, but furnished — and hence more expensive — expat houses are always available, while in Rotterdam, demand is greater than supply.

Most expats fall into this high demand, high priced and liberalised sector of the housing market where the maximum allowable rent — based on a complex points system for size, location, amenities, etc — is above EUR 541.36 for contracts starting from January 2001 and EUR 565.44 for contracts starting from January 2002.

The nation's 52 rent commissions — plus the Amsterdam and Rotterdam huurteams — help people in all areas of the housing market determine the legally allowed rent for their accommodation.

Many expats are not aware that if they pay an all-inclusive price — which includes rent, furniture and/or energy — they qualify for assistance from the rent commission at any time. (Other renters need to request a rent commission test within six months of signing their rental contract.)

Hence, word-of-mouth is key to ensuring expats know their rights under Dutch housing law. Multinational expat-employing companies and HR departments need to take a more active role in passing this information along to their expat workers.

But most importantly, the government should force landlords to register their apartments or subletting arrangements with a centralised rent commission, allowing for greater supervision of the liberalised market.

This system also means landlords will have to substantiate their rent demands when registering their accommodation and the government can maintain greater regulation and control. Random checks can also be carried out.

In addition, more huurteams are needed in other cities around the nation to keep tabs on the lower-cost housing market.

The nation's rent commission currently works on a request-only basis, but this system has obviously failed to keep rental prices down.

Reform of the system, plus obligatory policing, is urgently required.

Expats can obtain assistance from the rent commissions by calling 0800 488 72 43.