Are you interested in renting out your second home? Renting out your property can be a smart investment. Currently, the demand for housing is very high. A number of things are very important when renting out your second home. We go over these below.

Second home mortgage

The mortgage of your second home is different from the mortgage of your first home where you reside. The mortgage interest of your second home is not deductible. In addition, the interest rate of your second home is often higher and there is a maximum mortgage amount. For example, when taking out a second mortgage, you need to bring your own money. For this, you can bring the excess value of your own home, for example.

If you are going to rent out your second home, you should also have permission from the mortgage lender.

Good thing to think about when renting

Consider in advance whether you want to rent out your property in its entirety or, for example, parts of it. In addition, also think about whether you want to rent the property temporarily or indefinitely. These are important decisions to make early. Before you put your property up for rent, it is also necessary to ask your municipality for the rules for renting. This is because each municipality has different rules for home rentals. You can then arrange any permits in time.

Draw up a lease

When you are going to rent out your second home, it is wise to draw up a watertight lease. You have the choice of temporary rental or long-term rental. The contract contains several things to limit the risks. For example, it contains a description of the space, payment terms, duration, termination, any additional costs and other agreements. It is therefore wise to draw up the lease with an experienced rental agent. You will then not encounter unpleasant surprises later.

Temporary rental contract

With a temporary rental contract, you rent the property for up to two years. However, it is important to terminate the contract up to 3 and at least 1 month before the end of the rental period. This is because otherwise it will be automatically extended and the tenant will receive rent protection,

Long-term rental contract

For long-term rentals, you can make a contract for a fixed term of more than 2 years. If the lease is not terminated, the lease continues indefinitely.

What rent can you charge?

When you rent out your second home in the freehold sector, you are entirely free to set the rent. Every year you have the option of increasing the rent, but you must notify the tenant in writing at least two months in advance. However, this is only allowed when the property is also demonstrably improved.

Insurance of your second home

It is a good idea to check with the insurer to see if they also insure rental properties. This is because not all insurers do. This is because rental properties carry a higher risk. The rate is often higher and not everything is covered. Many landlords take out buildings insurance and possibly contents insurance as well.

When do I have to register with the Chamber of Commerce

You do not always have to register with the Chamber of Commerce. This is only necessary if you rent out houses on a commercial basis. Then you will be registered with the Tax Office. You also have to be registered at the KVK when you offer services when renting out your property. This includes, for example, cleaning, breakfast, dinner or other services.

When you register with the KVK you have a choice of legal form. The choice depends on the legal form that suits you best.

Taxation when renting out your property

The second home you own is placed under your assets in box 3. The value you have to declare in box 3 is the WOZ-value on January 1 of the year for which you file your tax return, minus the mortgage debt. You pay tax on the assets above €50,000 per person. You do not have to declare the rental income in box 3.