There is sometimes confusion about how often a rental agreement can be extended. Legally, there is no maximum number of extensions specified.
So, how does it work?
An extension for a fixed period (with a new end date) is generally not possible for most standard rental agreements. For a regular rental agreement with a minimum term that automatically extends indefinitely after its expiration, extension for a fixed period is not possible. The agreement only ends when the tenant or landlord (under strict conditions) terminates the rental agreement.
A rental agreement for a fixed term of up to two years ends on the agreed end date or when the tenant terminates it, as notified by the landlord. This type of rental agreement cannot be extended for a fixed period. However, it can be extended indefinitely.
The model where extension is possible: the diplomatic contract
The so-called interim rental agreement or diplomatic contract can be extended if both parties agree. The extension period is agreed upon, usually documented in an addendum appended to the existing rental agreement. It is important that both parties have written clarity regarding the duration of the extension.
Stringent rules and conditions
It is important to know that there are stringent rules and conditions when terminating and extending an interim rental agreement. The landlord can only terminate the rental agreement if there is a legal ground for termination, usually for personal occupancy. The notice period also depends on the duration of the rental agreement, including any previous extensions. The number of extensions is not limited by law.
To ensure the rental agreement actually ends as intended, it is crucial that everything is accurately and correctly documented in the rental agreement. Failure to do so may result in the rental agreement being classified as indefinite. In summary, there is no maximum number of extensions specified in the law. However, it is important to adhere to the rules and conditions governing the termination and extension of a rental agreement.
Rest assured that all employees of Interhouse letting agents’ offices are skilled in correctly applying the appropriate model rental agreement and are familiar with the rules and conditions regarding extensions and terminations. Renting out a property is indeed an art in itself.
