News from the Hague: temporary room rental limited

A majority of the House of Representatives consented with the initiative proposal to prohibit temporary contracts for room rental. Read here the consequences for homestay rental.

Surely you have not missed it: within the walls of the House of Representatives there has been debate about temporary contracts for room rental. At the same time, minister De Jonge strongly encourages better use of existing properties, including promoting Homestay. But, what exactly is going to change and what does it mean for you as a host?

Fight against housing shortage

In 2016, the Dutch government initiated the temporary rental contracts law. With this law the government hoped to increase the availability of private rental homes. However, the results are unclear and that’s why the government wants fixed contracts to become the norm again.

The main argument to ban temporary rental contracts is the stress it causes to tenants. With a temporary rental contract, there is a possibility that tenants get kicked out of their house after a certain period. Consequently, tenants move from room to room. Another negative effect of temporary rental contracts is the increase of rent that landlords easily apply.

The House of Representatives wants to protect tenants from these consequences. That’s why the majority of the House of Representatives consented with the initiative proposal of letting fixed rental contracts become the norm. The proposal first needs to get approved by the Senate and will get introduced earliest in 2024.

Exceptions and exemptions

The exact details of this proposal are still unknown. There will be a few considerable exceptions. For example, temporary contracts keep existing for family members that want to live in the same house. As well as during the sale of a second house or when you as landlord stay abroad temporarily. Besides, there will be an exception for people that bought a house and first want to try living together, this situation allows them to once temporarily rent out their other house.

What does it mean for me as a host?

If you rent out a temporary room or space in your house, you are allowed to keep using the ‘homestay contract’. This contract offers hosts the possibility to end the rental agreement within the first nine months. With a notice period of three months maximum, you are able to rent out a room for periods of one year.

If you rent out an independent living space (for example, a second house), there will be some changes. Because it will take a while untill the law comes into effect, you can keep using the temporary rental contracts. When there is more certainty about the exceptions to this law, we will inform you.

Government campaign to stimulate homestays

Minister De Jonge strongly encourages better use of existing properties. He believes that we can create 80.000 to 260.000 extra living spaces within existing houses, apartments or empty properties.

There’s more good news: the minister aims to make the rules concerning homestays and living together less complex. In his letter to the House of Representatives he wrote: “At this exact moment while the housing market is having a hard time, we need to make better use of the existing properties to create as many living spaces as possible”.

A government campaign about homestays is one of their initiatives. People who have a spare room in their house will get informed about the possibilities for temporary rental, for example to students, migrants or other people looking for a temporary home.

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Did you know that in most cases you don’t have to pay taxes while renting out a room in your house? Read more about it here.