Do I get market value?

Usually not. An investor buys a rented property and wants a return, so the offer is generally below the open-market price. Get an independent valuation first.

Can the new owner evict me?

Not easily. You have tenant protection and your lease survives a resale. In specific cases such as urgent own use a landlord can terminate, subject to court review.

Can the rent go up every year?

Yes, rent usually rises annually, depending on the contract and the legal rules for your type of rental home.

Does Ons Soort Makelaars offer sale-and-leaseback?

No. We are an estate agency and do not buy homes. We can independently estimate what your home is worth, so you can judge any offer fairly.

Selling your house and renting it back: how it works and whether it is wise

Q: What are the alternatives?

An equity release mortgage, an extra mortgage, or selling on the open market and renting elsewhere or buying smaller. Compare with an independent adviser.

Door Olha Seredynska

You want to use the money tied up in your home without moving. That often leads to selling your house and renting it back, also called sale-and-leaseback. You sell to an investor and stay on as a tenant. It sounds ideal, but there are real catches. We explain honestly how it works, the risks and the alternatives. Note: Ons Soort Makelaars is an estate agency and does not offer sale-and-leaseback itself.

How does it work?

You sell your home, usually to a private investor or a commercial party, and at the same time sign a rental agreement with them. You repay your mortgage, keep the remaining equity and pay rent instead of mortgage costs. Major maintenance generally moves to the new owner. It is mostly offered to older homeowners with a (nearly) paid-off home.

Advantages

You stay in your familiar home and neighbourhood.
You release your equity without moving.
No worries about major maintenance.
No mortgage, so no interest-rate risk.

Disadvantages and risks

Price below market value: an investor wants a return and usually offers less than the open market. Always first find out independently what your house is worth.

Rent increases: rent usually rises every year. Check you can still afford it in ten or twenty years.

Tenant protection: Dutch tenants are well protected and a sale does not end your lease ("koop breekt geen huur"). Since 1 July 2024 open-ended leases are the norm again (source: Rijksoverheid). Still, a landlord can terminate in specific cases such as urgent own use, subject to a court's review.

No more wealth building: any increase in value goes to the new owner.

Tax and benefits: the cash falls into box 3 and can affect allowances and care contributions. Get independent advice.

Alternatives

Equity release mortgage (verzilverhypotheek): you stay the owner; interest is often added to the debt, leaving less for heirs. Extra mortgage: if your income allows. Selling on the open market and renting elsewhere or buying smaller usually gets the best price; a selling agent can help. Also read our guide on selling a house.