Why it's crucial to keep Homestay Rental Permit-Free

In the past years the popularity of Homestay Rental in the Netherlands is on the rise. Taking away barriers is a crucial element of it's success and requires our constant attention.

Over the past few years, the popularity of homestay rentals has significantly increased, and it is expected to continue growing in the coming years. Campaigns by Hospi Housing and the Dutch national government have helped to spread awareness of the possibilities of homestay rentals to an increasingly broad audience. Thanks to effective lobbying, regulations have been relaxed and information provision improved. It is important to remove barriers for potential hosts so that more rooms become available. Keeping homestay rentals free from licensing requirements is crucial. In this blog, we explain why.

The Rising Popularity of Homestay Rentals

Since 2019, Hospi Housing has been actively campaigning to shake off the dusty image of homestay rentals and to show that it is possible for everyone. It doesn't matter how old you are, where you live, or how long you have a space available; every room counts.

According to a 2024 study by the Dutch Ministry of the Interior (BZK), as many as 8% of Dutch people are open to temporarily renting out a space in their home. This translates to over 100,000 people. If only a portion of these individuals were to rent out a room in their house, it would largely solve the room shortage.

Distinguish Between Professional Landlords and Hosts & Guest Families

To stimulate homestay rentals, the Dutch government took several measures already 25 years (!) ago. For instance, a trial period of 9 months was introduced during which the host can terminate the rental contract. Additionally, the room rental exemption allows rental income from homestay rentals up to €6,324 to be tax-free. Furthermore, in many large municipalities, no permit is required for lodger rentals.

Thanks to the introduction of the Good Landlordship Act, tenants in the Netherlands are better protected and have more certainty. Some municipalities opt to introduce a permit to better monitor landlords. Hospi Housing understands and supports this. However, it is crucial to distinguish between professional landlords (who sometimes own more than 50 properties!) and hosts & guest families.

There is a significant difference in motivation and professionalism between these forms of rental. As a host, you temporarily rent out part of the dwelling where you live. Unlike private rentals, this is not done purely for commercial reasons. The need for social contact or wanting to help someone are often the primary motivations.

Remove Barriers for Potential Homestay Landlords

Besides the municipality, there are more organizations with rules and administrative conditions for homestay rental. Think about the Tax Authorities, unemployment agency, social security office, housing corporations, or mortgage provider, insurance company, homeowners association, and so on. An application with a corporation can take up to 2 months, and the social security office sends a packet of nearly 10 pages of questions. This prevents people from getting permission but also makes people hesitate, unwilling to take risks, thus forgoing homestay rentals. In addition, people have questions about the contract, the rent price, higher energy costs, and other issues that can lead to doubts.

It is important that homestay rental remain as accessible and non-binding as possible. Together with the ministry, municipalities, and the aforementioned organizations, we are looking at how to simplify the rules. Introducing a permit makes the process for a host even more complex and raises the threshold even higher. A majority of potential hosts would then drop out or operate outside the rules. This results in fewer rooms and less protection for the tenant, which is highly undesirable. Even without a permit, hosts must adhere to the conditions of good landlordship.

How Hospi Housing Ensures Safe and Affordable Living Spaces

To protect tenants, we at Hospi Housing have an extensive verification process. We personally meet each new host and check whether the host and room are suitable for rental. We also check for fire safety, room price, and available amenities, partially replicating what would be done in a licensing process.

It is important to protect tenants without deterring potential hosts. Hospi Housing remains committed to this cause. Are you working for a municipality, housing corporation, or other relevant organization and curious about what we can do for you? We would love to get in touch.

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