Rental Costs

Financing a Security Deposit

Financiering van de Waarborgsom

Options for tenants who lack the upfront cash for a security deposit, which usually involve municipal aid or personal loans rather than specific 'deposit-free' products.

Table of Contents

Related terms

More terms from Rental Costs

Terms from the same part of the rental process, so you can read them together instead of looking each one up separately.

See Terms

A fee charged for administrative actions, which is almost always illegal when levied on a tenant by a landlord's agent.

An administrative fee, often called 'contractkosten' or a lease initiation fee, is a charge for drawing up the rental agreement, the legality of which is highly questionable.

'Leges' are administrative fees charged by government bodies for providing a specific service or processing an application.

An agency fee, also known as a broker fee or 'courtage', is a charge for real estate brokerage services which, by law, cannot be charged to a tenant if the agent is working for the landlord.

An alarm system fee is a recurring cost for professional monitoring, and responsibility for payment depends on what is agreed in the rental contract.

Paying residential rent annually is not a standard practice in the Netherlands; the law and market are based on monthly payments.

Review Financing a Security Deposit Through Eligibility Rules, Application Use, and Plain-Language Meaning

The Financing a Security Deposit entry explains general usage; exceptions, case context, and related terms determine how far that explanation applies.

More about Rental Costs

Every glossary entry that belongs to Rental Costs, collected on one page.

See Terms

Search the glossary

Look up a term, abbreviation or contract phrase and get a plain-language explanation with Dutch and English wording.

Search terms

Renting guides

Longer guides that walk through applications, contracts, costs and moving, with the terminology used in context.

Read the guides

Newest Properties in the Netherlands

Explore the latest properties added to Luntero. Find new apartments, houses, and studios across the Netherlands — updated daily to help you discover your next home faster.

Why Luntero

One Workspace for Your Dutch Rental Search

Luntero brings represented apartments, rooms, studios and houses from Dutch rental sources into one searchable place. Use the available filters to narrow your options, then check the original listing for current availability, price, conditions and application steps.

Listings From Many Dutch Sources

Browse rental listings collected from Funda, Pararius, Kamernet and other supported sources in one place. Coverage is broad but not exhaustive, and the original listing remains authoritative.

Intuitive User-Friendly Interface

Navigate our clean and straightforward design effortlessly on both desktop and mobile devices for a seamless apartment, house, or room hunting experience in the Netherlands.

Multilingual Support for Expats & Locals

Browse rental listings in English, Dutch, Spanish, French, German, and more. Luntero ensures you can find your next home in the Netherlands in the language you're most comfortable with.

Regular Listing Refreshes

Luntero refreshes collected listings regularly and search alerts email new matches after a successful check. A source can change between refreshes, so verify decisive details there.

Quick links

The High Hurdle of the 'Waarborgsom'

The security deposit (waarborgsom) is one of the biggest financial hurdles for new tenants. In the free sector, landlords typically demand a deposit equivalent to two, or sometimes even three, months' basic rent. For an apartment costing €1,800 per month, this can mean an upfront cash outlay of €3,600 to €5,400, in addition to the first month's rent. While specific financial products like a 'deposit free loan' are not standard offerings from Dutch banks, there are a few avenues a tenant with insufficient savings can explore, though each comes with significant caveats.

Option 1: Municipal Special Assistance (Bijzondere Bijstand)

This is the most important official channel for those with low incomes and no personal capital. A tenant who cannot afford the security deposit and/or the first month's rent can apply for bijzondere bijstand (special assistance) from their local municipality (gemeente). This is a form of social assistance intended for necessary, but unaffordable, one-off costs. The process involves:

A Strict Means Test: The municipality will conduct a thorough assessment of the applicant's income, savings, and debts.

Demonstrable Need: The applicant must prove that securing this specific housing is essential and that they have no other means to pay the deposit.

If the application is approved, the assistance may be provided as an outright grant or, more commonly, as an interest-free loan that must be paid back over time. This is a last-resort safety net, not a standard financing option.

Option 2: Private Personal Loans

A tenant could technically apply for a small personal loan (persoonlijke lening) from a commercial bank to cover the deposit. However, this is a highly risky strategy. The tenant will be paying interest on this loan, adding to their monthly expenses. The most significant risk occurs at the end of the tenancy. If the landlord makes deductions from the deposit—fairly or unfairly—the tenant will not get the full amount back to repay the loan. They will be left paying off a debt for money they never got back, turning a temporary cash flow problem into a long-term debt.

Option 3: Deposit Guarantees

As an alternative to a cash payment, some companies offer a depositogarantie (deposit guarantee). The tenant pays a smaller, non-refundable fee to the guarantee company, which then provides a guarantee to the landlord. While this solves the immediate cash problem, the fee is a sunk cost. Unlike a cash deposit, you never get it back, making it a more expensive option in the long run if you are a good tenant who would have received a full refund.

Financing a Security Deposit

More terms from Rental Costs