Service costs might sound familiar to you when you're renting a home in the Netherlands. The thing is that you’re not only paying for basic rent. On top of your basic rent, you must pay for other things. One of these are service costs.

What are service costs?

Basically, you pay for services. The total rent consists of the basic rental price plus the service costs. What you pay for is specified in your rental contract.

Examples of things that are covered by the service costs are:
   •  Caretaker in your building
   •  Cleaning and repairs in shared areas
   •  Use of furniture in your home.

Gas, water, and electricity included
In some cases, an advance payment for gas, water, and electricity is included in your service costs. The costs are often based on an average. 

How much you pay for service costs

What you exactly pay, varies per contract. Service costs are mostly monthly charged as an advance payment. If the exact costs are not yet known, they will be estimated. You pay this advance payment together with your basic rent.

Service cost settlement
Every year, you’ll receive a service cost settlement of all costs made. You get this settlement from your property manager. It exactly shows whether you have paid too much or too little in advance. And so, whether you get money back or have to pay extra.

You will receive this settlement maximum of six months after the end of a calendar year. If the service cost settlement is for 2022, you must receive it before July 1, 2023. Have you moved? Then you only pay for the time you lived there.

Other expenses 

Besides paying service costs on top of your basic rent, there are some other monthly expenses to keep in mind when it comes to renting a home. 

Gas, water, and electricity excluded
If you rent without gas, water, or electricity included, you need to arrange these supplies yourself. You pay directly to the energy company.

Municipal taxes
Everyone in the Netherlands needs to pay municipal taxes. These taxes consist of different charges, which you pay annually. For example, you pay for sewerage, waste, and water taxes. The rates of municipal taxes differ per municipality. More details about municipal taxes can be found on your municipality's website.

Insurances
It’s wise to take out insurance. Think of household insurance (inboedelverzekering) to be insured for damage to your belongings at home and personal insurance (aansprakelijkheidsverzekering) when you accidentally cause damage to a third party and are held responsible. These costs depend on the insurance and coverage you choose.