Renting out your home: here's what to do before the first tenant moves in

The decision to rent out a property sounds simple, but it requires more preparation than most owners expect. As estate agents, we regularly see some crucial steps being taken too late - or not at all. Here are the four things you need to have in place before handing over the keys.

1. Check whether letting is allowed

Do you have a mortgage on the property? Then you almost always need permission from your lender. In addition, an increasing number of municipalities require a rental permit, especially in the case of free sector houses or room rentals. Check this in advance - not afterwards.

2. Adjust your insurance

This is the step most often skipped, with sometimes costly consequences. Ordinary home insurance is designed for owner-occupation. As soon as you rent out, the risk profile changes: more intensive use, vacancy between rental periods, damage caused by tenants - not every policy automatically covers this.

Before renting out, check whether your current insurance allows rentals. If it does not, you will need a buildings insurance policy that suits rentals. Insurers vary widely in underwriting policies and conditions, so comparing pays off.

3. Draw up a watertight rental contract

Don't use random online templates. Make sure the contract is in line with Dutch rental legislation, with clear agreements on rent, indexation, security deposit and delivery statement. If in doubt, have it checked by a lawyer or estate agent.

4. Use the right advisers

Letting is more than just handing over the keys. For the legal and financial side, an experienced estate agent will help. For insurance, it is wise to seek advice from an independent adviser - Blauw Assurantiën compares several insurers and thinks along with you about the coverage that suits your situation.

Do it right from the start. Then the letting relationship will start as it should: with trust on both sides.