Dutch law protects tenants making renting risky for landlords, since in the event of problems such as non-payment, eviction can be a long process. The government also sets the maximum increase in rent per year, and historically has kept the increase below inflation, which makes renting less attractive for landlords. Deposits are typically two months rent and if the property is found via a makelaar (renting agent), as is usually the case, there is also a one month rent fee from the agent. Renting a property typically therefore requires four months rent in advance. A typical rent is € 1400
Buying is attractive, since part of the interest paid for a mortgage is subtracted from income before income tax is applied. So, for example, a € 300,000 mortgage at 5% for 30 years would require a € 1550 payment per month, of which initially € 1250 is interest, most of which can be subtracted from the mortgage holders income prior to income tax being applied, which is typically worth about € 500-600, bringing net cost to around € 1000.
Semi-private housing associations own about 75% of all rental property in Amsterdam. These properties are only available through waiting lists, where the wait time is typically many years
As a result, the demand for rental properties greatly exceeds the supply. Finding a home to rent is a difficult task. Buying as an alternative is problematic for short stays, since there is a 6% transfer tax on the value of the property plus about another € 6000 in costs. Given an appreciation rate of 3.0% (which is the rate as of August 2008) it takes three years to recover the costs of buying.
Squat properties are common throughout Amsterdam. Dutch law provides that any property left unused for more than one year may be subject to squatting. The property is usually obtained by forcible entry. The new occupants typically contact the police to inform them of their new residency. Provided that a bed, desk, chair, and working front door lock are present, the police allow the occupation of the property, and then contact the owners, who must commence legal proceedings to evict the squatters. These ‘squatted’ properties are often marked by the new residents with a circle and lighning bolt. A number of these squats have become well known, such as OT301, Vrankrijk, and the Binnenpret, and several are now businesses, such as health clubs and licensed restaurants.
