Amsterdam: no fine if people on welfare rent out a room

This was announced by Amsterdam aldermen Rutger Groot Wassink (Social Affairs) and Zita Pels (Housing).

In Amsterdam, nearly 40,000 families receive monthly welfare benefits. This serves as a social safety net; to prevent abuse, strict rules stipulate that any additional income must be largely repaid.

That is why landlord rentals are unattractive for this group: until this week, what these residents earn in rental income was deducted from their benefits.

Eating along

That will change starting November 1st. "An Amsterdam resident on welfare who rents out a room can keep €275 of their monthly income from renting out a room from that date, in addition to their existing welfare benefits," the aldermen said. Anyone who also allows their tenant to eat in can even keep €475 of their monthly income.

If just 5 percent of Amsterdam's benefit recipients were to try renting out a room, this would create two thousand new rooms.

Short contracts

In Het Parool, Alderman Pels hopes the scheme will create hundreds of additional student rooms. It is important, however, that the landlord, such as the housing association, gives permission.

Anyone considering a landlady rental needn't worry that the student in question will never leave. The first nine months of the contract are considered a trial period, and a landlady rental contract always lasts a maximum of one year.

Renting out a room in your home isn't just beneficial for welfare recipients. People with other poverty benefits, such as IOAW (older unemployed) or IOAZ (poor self-employed), are even allowed to keep their full rental income.

Also attractive for retirees

It's not just in Amsterdam that hospitality rentals are becoming more attractive. Throughout the Netherlands, too, recipients of AOW (state pension) or WW (temporarily unemployed) benefits receive no benefits from hospitality rentals. Nor does this income affect their rent allowance, healthcare allowance, or child benefit.

Landlord rentals are a great solution, especially for younger students. Until they turn 21, they aren't eligible for housing benefit, making it easier for them to find affordable housing.

The national housing shortage is expected to reach over 32,000 rooms by 2030. Since the introduction of stricter rental regulations last year (Affordable Rent Act), many owners are selling their rental properties. Students are particularly affected.