Higher Returns from Your Property? The Role of WWSO in Room Rental Returns

As a real estate investor in room rentals, you are constantly looking for ways to optimize the return on your property or properties. Every dollar counts, and every opportunity for improvement is worth exploring. But did you know that the WOZ value of your property, in combination with the WWS, plays a crucial role in your potential rental income and therefore in your return? This is where WWSO (in this context: the effective optimization of the WOZ value for your rental properties) comes into play.

‍

What is the connection between WOZ, WWS, and your return?

Let's explain it step by step:

1. The WOZ value: The basis for taxesThe WOZ value is the value of your property as determined by the municipality. This value is reassessed annually and serves as the basis for various municipal taxes and levies, such as property tax (OZB), water board tax, and income tax (owner-occupied home allowance). An excessively high WOZ value therefore means unnecessarily high costs.
2. The Housing Valuation System (WWS): Determines the maximum rent Forsocial housing (and in some cases also liberalized housing below a certain threshold), the maximum rent is calculated using the WWS. This system awards points based on characteristics such as surface area, facilities (kitchen, bathroom), energy performance (energy label!), and... yes, you guessed it: the WOZ value. A lower, but correctly determined WOZ value can contribute to a more favorable rent point score, which can be important for the affordability of your rooms and for preventing rent commission proceedings.
3. Room rental: Specific dynamicsInroom rental, the WWS system is often applied on the basis of the individual living spaces or a proportional share of the common areas. As a result, small deviations in the WOZ allocation or the points system can have a major impact on the total rental potential of your property.
4. Return: The ultimate goal Yourreturn on room rental is directly influenced by your income (rent) and your expenses (taxes, maintenance, etc.). By optimizing your WOZ value through a thorough objection procedure—supported by a solid report (WWSO)—you can reduce your costs. By maximizing the WWS points score (if applicable), you can optimize your income. Both contribute directly to a higher return.

The Role of WWSO: Your Key to Optimization

In this context, WWSO stands for the expertise and process of critically assessing the WOZ value of your property, with a special focus on its impact on your room rental strategy and return on investment.

A specialized party such as Renewable Partners B.V. can help you with this by:

• Thorough analysis of your WOZ decision: We check whether the municipality has correctly taken all relevant factors into account in the valuation.
• Independent valuation and substantiation: We collect and analyze comparable properties and specific characteristics of your property that may influence the WOZ value. These include the state of maintenance, the actual rental price (for rented properties), the ratio between living space and communal areas, and vacancy rates.
• WWS analysis in relation to WOZ: We can accurately calculate the impact of the WOZ value on your WWS score and advise you on any optimization opportunities.
• Submitting a professional objection: We will draft a thorough objection and submit it to the municipality on your behalf, which will significantly increase the chances of a successful reduction in the WOZ value.

Why take action now?

The WOZ value is determined annually. This means that you have the opportunity to object every year. A successful objection can not only lead to immediate savings on your municipal taxes, but also has a continuous positive effect on your operating costs and, indirectly, on the maximum rent you can charge for your rooms.

Want to know more? Watch our webinar about WWSO and room rental!

Would you like to explore this topic in more depth and receive practical tips on how to get started with WWSO for your rental properties? We regularly organize informative webinars in which we discuss all the ins and outs.

Are you an investor in room rentals and want to be sure that you are getting the maximum return from your property? Then let our experts look at the WOZ value of your property. A correct valuation is the basis for an optimized return.

Please contact Renewable Partners B.V. for a no-obligation consultation about the possibilities for your real estate portfolio.