The Landlord's Homework
'Due diligence' is the professional term for the process of investigation and verification that a prudent person is expected to undertake before entering into an agreement. In the rental context, it refers to the entire tenant screening process. It is the landlord's responsibility to conduct thorough due diligence on prospective tenants to protect their financial investment and ensure they are complying with any legal or insurance obligations. This process involves verifying the information provided by the applicant and assessing their risk profile. While it can feel invasive from the tenant's side, it is considered a standard and necessary business practice for any professional landlord or real estate agency.
The Tenant's Due Diligence: A Necessary Counterpart
The crucial, skeptical insight for any renter is that due diligence is a two-way street. While the landlord is investigating you, you should be performing your own due diligence on them and the property. In a market rife with scams and unprofessional landlords, a tenant who blindly trusts the other party is taking a significant risk. Tenant due diligence should include:
- Verifying the Landlord/Agent: Do a quick search for online reviews or warnings about the real estate agency (
makelaar) or landlord. Are there many negative stories or complaints?
- Confirming Ownership: Is the person presenting themselves as the landlord actually the legal owner of the property? This can be verified for a small fee via the official Land Registry (
Kadaster). This is a key step to avoid scams.
- Checking for Necessary Permits: Is the property in an area that requires a
huisvestingsvergunning (housing permit)? If you plan to share with friends, does the landlord have the required omzettingsvergunning (house-sharing permit)? Renting an unlicensed property can put you at risk.
- Scrutinizing the Contract: Read every clause of the draft rental agreement. Look for unusual or illegal clauses (e.g., charging for illegal fees, unreasonable cleaning requirements, clauses that forbid you from registering).
Ultimately, the rental process in a competitive market is often one of mutual distrust. The landlord conducts due diligence because they fear a bad tenant; the tenant should conduct due diligence because they rightly fear a bad landlord.
