The Deposit and Other Costs

Information about the deposit and other costs of renting a flat or house in the Netherlands...

Standard practice is to pay the first month's rent in advance. In addition a deposit (Borg) equivalent to one or two months' rent is usually requested. Finally, there will be a fee for the agent if applicable.

It is common for the agent to hold the deposit on behalf of the landlord. In some cases an agent may also negotiate for the deposit to be offset against the last month or two of rent.

Always ensure that there is documentary evidence of all payments made. Rent is best paid via bank transfer and receipts should be obtained for deposits and fees.

Some properties are rent controlled and the government is strict about enforcing these rules.

Other costs

  • Service charges, if there are any, should be explained in the lease
  • Insurance may or may not be included in the rental cost and again this should be detailed in the lease
  • A real estate tax, onroerende-zaakbelastingen or OZB, is payable yearly to the local authorities. A lease for less than 12 months should include a reduced rate of this tax as part of the contract. The municipality sends out the annual assessment with the tax based on the market value or square footage of the property. The tax has two parts - the occupant's part and the owner's part. Owner-occupiers pay both parts. Rates differ from one municipality to another. The OZB tax bill for property owners includes other municipal taxes; the Sewer Tax (rioolrecht) for the connection to the municipal sewer system and the Waste/Cleaning Tax (afvalstoffenheffing/reinigingsrechte) for the collection of domestic waste