Homestay Rental in Social Housing - results pilot housing corporations Utrecht
Homestay Rental has a positive effect on the welbeing of social tenants and contributes to making better use of existing housing. After a successful pilot, all housing corporations in Utrecht now allow Homestay Rental.
Homestay Rental = renting out a room or part of the home in which you live. It's an excellent solution for the housing shortage, but with just as many benefits for the host. In recent years, homestay renting has been making a comeback. Among others, the Ministry of the Interior has taken various measures to make homestay renting possible for more people.
However, despite all the positive developments, not all housing corporations allow homestay renting yet. Often, there is fear that homestay renting will have negative effects on tenants, or there is a lack of clarity about rules and processes. With these questions in mind, the Utrecht housing corporations, united in the Foundation of Utrecht Housing Corporations (STUW), started a pilot with Hospi Housing in 2021. This resulted in all Utrecht housing corporations allowing and even actively promoting homestay renting from early 2023.
Because we understand that housing corporations may have doubts and act cautiously, we would like to share the conclusions and results of the pilot in Utrecht in this blog.
Homestay Renting as a Versatile Solution
There are tenants who live in a (too) large social rental house. After living there for years with a family, they now live alone or with a partner. There are also tenants who are lonely or have difficulty making ends meet financially. On the other hand, there are students who live far away but study in Utrecht and are urgently looking for a room. Hospi Housing offers a solution by connecting people looking for a room with people who have a spare room available. Hospi Housing's experience shows that this way of living has a positive effect on the well-being of both the host and the tenant.
Possibilities & Motivations
The Utrecht housing corporations own enough houses suitable for shared housing. People keep their own living space but share, for example, the kitchen or bathroom. During the pilot that ran in 2021 and 2022, we investigated the interest in temporary housing within social rent. It turned out that tenants sign up for various reasons.
Remco de Maaijer, director of the STUW: ‘It turns out that the social component is important. Older residents who live alone after the death of their partner and with children who have already left home, like having someone else living in their house. The financial aspect is also important. People can do something extra, like go on vacation, from the rental income. The last important reason is that residents with a spare room simply want to help someone.’
Information & Communication
Sometimes up to 10 (government) agencies can be involved when someone wants to rent out a room in their house. Even housing corporations and municipalities sometimes do not know what is allowed in specific situations. Trust in the government is low, and the consequences for 'breaking' the rules are significant. It takes time to restore trust and remove doubts among tenants. Without active and clear communication from housing corporations and other governments, tenants will not take this risk.
Active communication by housing corporations about homestay renting also increases general awareness of homestay renting and strengthens municipal campaigns to encourage homestay renting. Instead of focusing on the risks, the benefits for individuals and society are highlighted.
Larger-to-better programs & Homestay Rental
In addition to Homestay Rental, housing corporations in Utrecht have the larger-to-better program, which the Utrecht corporations use to encourage people to move to smaller but better fitting housing. This program means that people who want to move to a smaller home are given priority, provided they leave a larger social rental property. Encouraging homestay renting is a supplement to this because not everyone in a large home can or wants to move to a smaller home immediately. Only 20% is willing to move within 5 years. Homestay Rental is then a suitable temporary alternative.
Administrative Burden & Conditions for Corporations
The administrative burden on corporations turned out to be negligible and even decreased in some cases. The process from the corporations is simple: active communication on the website and in the newsletter. Tenants can submit an application form, after which the corporations perform a few checks. Then a specialized organization takes over the personal guidance, matchmaking, and aftercare.
As a housing corporation, you can allow homestay renting under conditions. In other words, let the tenant request permission each time. This way, you maintain control as a corporation. Subletting is usually allowed by Utrecht corporations, but a tenant must report this in advance. It has been agreed with the Utrecht corporations that the rent must be 'reasonable' (max 50% of the base rent), which in practice means a rent between € 250 and € 450 per month including utilities.
Terminating Rental Period & Conflicts
First, much attention is paid to careful matchmaking to prevent possible conflicts. If a conflict does arise, Hospi Housing contacts the tenant and host and can mediate if necessary. Often, a solution is quickly found. If this is not the case, the landlord can unilaterally terminate the contract without giving a reason in the first 9 months thanks to the 'homestay contract'.
Conclusion
Homestay Rental contributes to reducing housing shortages, combating loneliness, and preventing poverty. Especially for social tenants this can bring benefits; think of more financial security and more social interactions. Homestay renting has a positive effect on the well-being of both the host and the tenant. The concept is particularly well received by tenants living in a (too) large rental home, for example, because they first lived there with a family and now alone or with a partner.
An important part of the collaboration is information provision and personal guidance. Many people do not know that homestay renting does not affect healthcare and rental allowances or old-age pensions. Due to the Dutch maze of rules and misinformation, active and repetitive communication is crucial.
Applications for homestay renting are initially limited and gradually increase. Thanks to collaboration with specialized organizations, housing corporations spend little extra time on administration or matchmaking. In addition, housing corporations can set their own rules, such as a maximum (base) rent and a reporting requirement or prior permission, thus retaining the desired control.
Help and Advice
Do you work for a housing corporation and are you investigating the possibilities for homestay renting within your organization? Hospi Housing is happy to think along with you to see what is possible within your housing corporation and what homestay renting can bring to your organization and tenants. For more information, visit this page or send an email to info@hospihousing.com. See you soon!