The housing market in Amsterdam has been overheating for at least 5 consecutive years. Since we used to hold a high economic standard, and the average income was extremely high opposed to some surrounding European countries, pretty much every application for a loan was approved by the banks. But it looks like times are about to change. The global credit crunch is already taking effect in The Netherlands as well.

Since banks have increasingly become hesitant to lend people money, the exchange of new and existing houses has decreased with 46% over the last 6 months, and the end is not is sight, according to the IMF ( International Monetary Fund ) and the local triple A rated Rabobank, who both issued a warning that the Dutch HOUSING BUBBLE is the biggest in the world, and about to pop. How's that for bad news!

And since usually, when someone wanted to buy a house and they could actually already buy the house, without worrying about selling their current home, the current situation, where it has become harder and harder to get a loan, forces them to hold on to their current home, and are tempted to temporarily rent it out. That way they feel that they can wait until the market restores itself, and at least earn some money to pay for mortgage rates.

But since the number of people in this situation has dramatically increased, the law of supply and demand takes effect. An increasing number of houses and apartments are offered to our agency, therefore putting some strain on the prices, which will inevitably go down in due time. The fact that the credit crunch has on American and f.e Japanese companies, has resulted in a decrease of expatriates coming to Amsterdam. And there you go, more houses to choose from, and less people looking to rent them. This development has enabled us to already convince some house owners to lower their prices, and we expect that negotiation wise there is a lot to gain in the coming months and perhaps even years, depending on the crunch and how it develops. The majority of the agents and house owners are still in a state of denial, and think they can ride this ride without being affected by it, but in my humble opinion, and based on a number of very interesting reports, I feel that this will be the future of expat housing in Amsterdam.

Useful tips on renting an apartment in Amsterdam.

1. Always work with a licensed rental agency.

In Amsterdam, and this pretty much goes for every city, there are only so much licensed rental agents. Since the housing market involves payment of commission equal to 1 months rent , there are many "cowboys" without the necessary license operating on the net, trying to convince you with a nice website, or a smooth talking rep. Don't fall for it.... Licensed agents are better educated, maintain good relationships with house owners and the city council, and usually maintain a higher standard of integrity. They know what is legal or illegal, they have an office, a registration at the chamber of commerce, the pay taxes, and undergo the annual edition by the council,.. in other words, they have a lot to lose. If an agent ( In Amsterdam ) does not follow the guidelines for renting properties set by the city council, they can lose their license. And since you as a prospected tenant are in need of legal accommodation, you do the math.

2. Prepare your move to the Netherlands in advance.

What we see happening on a regular basis, is that when expats are coming over to the Netherlands, they only then start worrying about getting a place to live. But since usually your employer expects you to start asap, this puts you under a lot of stress. We would advise traveling expats to already commence their search in their home country by contacting a couple of agents to see what they have to offer in terms of accommodation and availability.

3. Set your maximum budget.

We would advise you to set a maximum budget you want to spend on housing, and stick to it. Your monthly income should tell you what a responsible amount would be. Since, next to the rent, their always are additional costs and fees involved, you will always end up paying more then you have anticipated. Now, to start of your new career in a foreign country knowing that you might end up in debt, is a bad scenario no one wants to encounter. So set your max and stick to it.

4. Make sure you can provide all the paperwork involved.

The most common paperwork you have to provide are:

A copy of your passport

A copy of your working contract

A bank statement

Make sure you can provide these documents, since it will be a criteria for obtaining an apartment, part of the tenant screening procedure. If you travel without these documents, or are not in a position to deliver, you will most certainly be denied as the prospected tenant. And only then you are bound to end up in illegal rental situations such as sublet.

5. Investigate the different city area's, and see which one matches your profile.

Your new apartment should most of all fit your profile and make life easy. Use f.e Go ogle maps to find the address of your work / employer, and decide how far an apartment can be situated, and decide on a radius, based on the form of transportation you are likely to use. Also, see what an area brings you in terms of shops, public transport, and just your regular social events like bars, restaurants, cinema etc. Try to find the best match between your needs and wishes.

6. Do not rush into signing a lease.

Signing a rental lease is like any other legal obligation. You are bound to Dutch law, and like every one else, in some circumstances you are liable. Therefore, don't rush into signing a lease, even if the agent is telling you that this is your last chance, or this place with your name on it will be gone ;-) Read the lease carefully, and if you don't posses enough legal skills to determine if the lease is okay, you might want to take it with you and have HR take a look at it. An agent should not have a problem with providing you with a concept rental agreement, if the terms and conditions in the lease are legal and hold up under Dutch law.

My name is Richard Oerlemans, and I am the owner of one of the largest expat rental agencies in Amsterdam.