The “fixed-term tenancy agreements”-act

The “fixed-term tenancy agreements”-act (Wet vaste huurcontracten) has been approved by the Senate and will come into effect for new lease agreements from July 1st 2024. Fortunately for landlords, there are still plenty of options for renting out a property on a temporary basis! For people looking for a rental property however, this is not good news, because many landlords who are not willing to enter into an indefinite contract immediately may now not rent out those properties at all.

For specific groups of tenants, it will become even more difficult. The government is now introducing a regulation that excludes certain target groups from temporary rental. Since the same government is not going to ensure a healthy rental housing market, there are tenants for whom it will (still) be impossible to find a rental property.

Because I feel it would be pleasant for all parties if a rental housing market continues to exist, I will start by listing the remaining possibilities.

What possibilities are there?

  • Temporary lease agreements based on interim rent/diplomat clause; these contracts are intended for homeowners who temporarily live elsewhere and for that reason, rent out their home.
  • Temporary lease agreements based on the Vacant Property Act, intended for homes that are for sale or designated for demolition or renovation.
  • Target group contracts, intended for students, large families, etc.
  • Temporary lease agreements concluded before July 1st 2024 still use the current regulations. Even if the starting date is after July 1st (the date of signing is leading).
  • Furthermore, the government has made some exceptions; tenants with whom a (regular) temporary lease agreement may still be concluded. In short:
    • Students that need to rent someplace other than where they currently live;
    • Tenants who temporarily have to live elsewhere due to necessary renovation of their current home;
    • People from social care or are in an emergency situation and have proof of such;
    • Tenants with a “second chance”-agreement; tenants who’ve had a previous rental contract terminated due to, for example, severe nuisance casued;
    • Tenants between the ages of 16 and 27 that take over their deceased parent(s)/caretaker(s) (the main tenant) rental contract;
    • Parents that are separating/divorcing, can prove they no longer cohabitate and temporarily rent a property to live close to their child or children;
    • Tenants that work on the Waddeneilanden and have their main home elsewhere;
    • Refugees with permits moving out of a shelter and waiting for permanent housing.
  • And now, two entirely new possibilities:
    • A special rental agreement for private owners that want to (trial) cohabitate. A temporary agreement may be drawn up, in which the landlord can terminate to sell the property. There are, however, several strict conditions to termination by landlord.
    • A landlord wishing to rent out the property to a first degree relative may terminate the rental agreement, provided this is stipulated in the agreement beforehand.

What now?

For landlords that don’t want to be bound to a tenant right away, there are still plenty of options. In the current heated property market it’s relatively easy to find a tenant that may legally  be offered a temporary rental agreement. A possible solution can also be to search for a tenant that is looking for a temporary property and will terminate in due time (such as expats). But the tenant that isn’t included in the aforementioned exceptions will have a tough time of it, because they will be moved further to the back of the line. Hopefully, the new government will busy themselves with creating extra conditions to ensure a healthy property market in which investors want to involve themselves. Anything better than overregulation and thoughtless bandages on self-inflicted wounds.

The tenancy law in book 7 of the Civil Code is even more difficult with the Fixed-term tenancy contracts act. Seek proper advise from experts before entering into an agreement!

Are you looking for more information? Contact us directly.

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