Should You Rent or Sell Your Home? A Look at the Factors to Consider

Selling generates immediate capital that you can use to take the next step. Renting generates monthly income, but you’re left with the expenses, maintenance, and risk. Therefore, don’t base your calculations on the gross rent; instead, use what’s left after deducting maintenance, insurance, vacancy costs, and taxes.

Also keep in mind that a rented property falls under Box 3 and that the mortgage interest deduction ceases as soon as the property is no longer your primary residence. For many owners, that difference is the deciding factor.

You can’t just rent out your property. Your mortgage lender must give permission, and without that permission, you may be in violation of the terms of your mortgage. The municipality also has requirements, especially in The Hague, where a permit is required for certain types of rentals.

In addition, rent control in the Netherlands is strong. A temporary lease is only possible in limited cases; after that, a tenant is, in principle, entitled to continue the lease. Anyone who wants to move back into the home in two years must make careful arrangements.

Renting out your home can be a good option if you’re moving elsewhere temporarily and are certain you’ll return, or if you’re intentionally holding onto the property as an investment and can make it financially viable. In a city with a chronic housing shortage, long-term appreciation remains a compelling factor.

It does require an entrepreneurial spirit, though. Renting out property isn’t passive income: there are tenant turnover, maintenance, and sometimes disputes. If you don’t have the time or inclination for that, you can outsource the management, but that further reduces the return on investment.

We’ll calculate both scenarios for you based on the current market value, the expected rent in your neighborhood, and your personal tax situation. This consultation is non-binding and will provide you with a concrete overview rather than general advice.

If you choose to rent out the property, we can handle the management. If you choose to sell it, we’ll market the property with the same care. In both cases, it starts with a well-founded appraisal.