If you let a house in the Netherlands and you need to renovate or demolish it, you must pay a relocation allowance to your tenant. The relocation allowance is a contribution towards the costs of relocation and refurbishment. If your tenant suffers any loss, they may ask for compensation. This amount will be added to the relocation allowance. If the tenant also receives an amount from the municipal authorities, you may deduct this amount from the relocation allowance.