Knowledge Centre
Find the meaning of various terms related to renting & letting here.
When renting a new home, there's more to consider than simply picking a property and moving in. Especially when you're searching for a rental for the first time, there are several things to keep in mind. If you're new to the world of renting, you'll likely come across terms you're not familiar with, such as delivery condition, rent protection, and the rent tribunal. These are terms you really should know when you're renting a place on your own, as it's likely you'll deal with one or more of these aspects.
Housing Benefit
What does this entail?
When searching for a new, appealing home, many aspects come into play. You have to consider many factors, and it can happen that you're not equally informed about everything. That's not surprising, as there are many terms you might not be familiar with yet. Looking for your own rental home is a big deal, and it is therefore important to acquire enough knowledge about everything related to renting, such as the rent allowance. Here, you'll read further about what the rent allowance is and how it exactly works.
Rent Allowance, what exactly is it?
When you rent a house, you might come into contact with rent allowance. The rent allowance is a compensation in rental costs provided by the Dutch government. This subsidy is available if tenants pay a lot of rent compared to their income. That means the rent allowance is an income-dependent subsidy, and not everyone is eligible. If you have sufficient wealth, the rent allowance will not be available to you. Compared to tenants without rent allowance, you have relatively lower costs in addition to the rent because of the rent allowance. How much this rent allowance is depends on the rent price, your age, the type of dwelling you rent, and of course, your income.
Qualifying for Rent Allowance
But when do you exactly qualify for rent allowance? There are a number of conditions that you and the rest of your household must meet. First of all, the rent of the property must not be too high. What is considered 'too high'? Too high means the rent is above the rent limit. You can find the rent limit on the website of the Tax and Customs Administration and it depends on the year and your age. For example, the rent limit in 2020 for someone aged 23 or older is €737.14. Furthermore, you must rent an independent living space.
Obviously, your income and wealth must not be too high as well. This applies not only to you but also to fellow residents. Since 2020, there are no more income limits. Keep in mind that the higher your income, the less rent allowance you will receive. This is variable and depends on your age, the household composition, and the rent. If you look at wealth, you may (if you don't have a benefit partner) have a maximum of €30,846 in assets to qualify for rent allowance. With a benefit partner, the amount rises to €61,692. If you exceed this, you cannot expect to receive rent allowance.
Furthermore, you must live in the Netherlands, be registered with the municipality (as well as the co-residents), and be at least 18 years old. Moreover, you and your potential benefit partner must have Dutch citizenship or a residence permit. Additionally, you must be able to prove that a rental contract has been signed and that you pay the rent with bank statements as proof.
Applying for Rent Allowance
You can apply for the rent allowance digitally with Mijn Toeslagen. You do this using your DigiD account. Rent allowances can be applied for the coming calendar year until 1 September. So if you want to apply for your rent allowance for 2021 in the year 2020, you must do so before 1 September. Too late is too late. You also do not need to apply for rent allowance again every year. Once the rent allowance starts, it continues. However, this does not apply if you no longer meet the conditions to receive rent allowance. So if there is a change in income, rent, or assets, review the implications for the rent allowance.
Curious about how much rent allowance you might receive? Or whether you even qualify for rent allowance? You can make an online calculation on the website of the Tax and Customs Administration.