Am I allowed to use a Temporary Rental Agreement?

As of July 1, 2024, Fixed Rental Contracts are the new norm. For certain groups and in certain situations Temporary Rental Contracts are still possible. In this blog you read all about it.

As of July 1, 2024, the Fixed Rental Contracts Act has required landlords to almost always offer a permanent rental contract. This regulation is intended to provide tenants with more security about their living situation. Temporary rental contracts are still an option for some groups, such as students. Exceptions have been made for these groups and in certain situations, including when renting out part of the house in which you live. You can read more about it in this blog.

The Fixed Rental Contracts Act

From July 1, 2024, the Fixed Rental Contracts Act came into effect. From this period onwards, only permanent rental contracts may be concluded. Previously, some tenants had to look for a new home every two years. This law now provides them with more security. Fixed-term contracts are still possible for certain target groups and situations, which you can read more about later in this blog.

Temporary Rental Contracts Signed Before July 1, 2024

Are you a tenant or landlord and have a temporary rental contract that was signed before July 1, 2024? Then it remains valid until the agreed end date. For independent living spaces, such as a studio or apartment, this is a maximum of 2 years, and for non-independent living spaces, such as a room, this is a maximum of 5 years. After this period, there are two options: either the tenant moves out, or the landlord offers a contract for an indefinite period.

Who Can Have a Fixed-Term Contract?

For some target groups, such as students, a temporary rental contract is actually desirable. An exception has been made for these groups, allowing them a rental contract for a maximum of 2 years. You can get a temporary rental contract if you:

• Are a student renting temporarily in a different place from where you live for your studies.
• Need to live elsewhere temporarily due to renovation or work.
• Are coming out of social care or are in a social emergency situation.
• Are getting a second or last chance after a previous rental contract was terminated, for example, due to nuisance.
• Are between 16 and 27 years old and are taking over the rental agreement from a deceased parent or caregiver.
• Are going through a divorce and want to rent temporarily to be close to your children.
• Are a permit holder, coming directly from a COA shelter, and waiting for permanent housing.
• Work on one of the Wadden Islands but live in a mainland municipality.

When is a Temporary Rental Period Still Possible?

Homestay Rental

If you and your tenant live in the same house. You are renting a space in the same house as your tenant or landlord and you share facilities such as the kitchen, bathroom, or toilet. It doesn’t matter whether it is a purchased or rented property. With room rental, you enter into an indefinite contract where the first 9 months serve as a trial period. As a landlord, you can terminate the rental contract during this period, with a maximum notice period of 3 months, without giving any reason. As a tenant, you can always terminate the rental period with 1 month's notice.

Subletting or Diplomat Clause

Are you temporarily not at home? For example, for work, internship, or vacation? Then you may temporarily rent out your home until you return to it. This is called subletting and is also known as 'the diplomat clause'. You then enter into a fixed-term agreement and stipulate that the tenant must leave the dwelling after the agreed period.

A key aspect of the diplomat clause is that neither the tenant nor the landlord may terminate the contract prematurely. Unlike regular fixed-term contracts, sublet agreements may be extended, and multiple agreements can be consecutively made with the same parties. As a landlord, you need to inform the tenant in time about the expiration of the agreement.

The House is Temporarily Vacant

It may be that your home is temporarily vacant due to sale, renovation, or planned demolition. In these cases, the vacancy law applies, and you may temporarily rent out the dwelling. Note: you need a permit from the municipality for this. This permit is valid for a maximum of 2 years and can then be extended annually for up to 7 years (10 years for buildings that previously had no residential function).

In these cases, interim termination is possible, for example, because the dwelling is sold or the demolition or renovation is starting. For landlords, the notice period is at least 3 months, tenants can always cancel with 1 month's notice. More information about the vacancy law can be found at this Government website.

Vacation Rental

In some cases, you may temporarily rent out your dwelling to tourists, for example via Airbnb. More and more municipalities are setting conditions for tourist rentals, such as a maximum number of days or a licensing requirement. If you have a rented dwelling, renting to tourists is not allowed. Consult your municipality for local rules and (tourist) taxes.

Need Personal Advice?

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