Renting Out Your Home as a Hotel; City of Amsterdam Steps Up Supervision

Silvia Domínguez Saínza

These past months have seen frequent news reports about the (illegal) renting out of homes on websites like Airbnb. Meanwhile many judgments have awarded eviction orders because of illegal subletting through such websites. Since the summer of 2015 the City of Amsterdam has intensified the supervision of this illegal renting out of homes, which has led to hefty administrative fines.

Many landlords try to chxallenge those fines, usually without success. Recently the Administrative Jurisdiction Division of the Council of State (again) issued a decision1 confirming that (1) if the municipal database does not list any occupiers, (2) the home is offered for rent online and (3) there are tourists in the home, the home is considered to be rented out as a hotel. The City of Amsterdam holds that the illegal renting out of homes keeps a large number of homes from the housing stock of Amsterdam, while the waiting lists of people wanting to live in Amsterdam are long. The City of Amsterdam (and of course other local authorities that face this problem) has several tools to deal with the illegal renting to tourists.

The local authority can enforce the law by imposing administrative fines on account of breach of the housing regulations or by imposing orders subject to penalties on account of letting in conflict with the zoning plan.

Most housing regulations do not allow residential properties to be converted into something else without permits. Violations are punishable by sizable (administrative) fines. Letting homes to third parties may also be in breach of the zoning plan, as zoning plans usually define homes as residential property intended to be occupied by one household. Recent case law shows that these days local authorities increasingly prefer to enforce by imposing administrative fines on account of breach of housing regulations. The City of Amsterdam has even made this its explicit policy.

The fines imposed are substantial. In Amsterdam first breaches are punished by fines of EUR 12,000, subsequent breaches by EUR 18,500.

Renting out your home temporarily is allowed but subject to strict conditions. If those criteria are not met, landlords run the risk of being fined. Home owners who would like to offer their homes on websites like Airbnb would do well to first check whether they meet all criteria. If not, they may have to pay dearly instead of earning some pocket money.

Silvia Domínguez Saínza
dominguez@slangen-advocaten.nl
12 January 2016

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