Jack always loved living in his ‘tiny house’. But when he fell back in love with his childhood-sweetheart after 40 years, it turned out that she wasn’t as thrilled living there as he was… And so the search for their new home began. Thankfully, it didn’t take long! They found a beautiful apartment a few towns over, that hardly needed any work done. His ‘tiny house’ was put up for sale.
Unfortunately, selling it turned out to be more difficult than initially hoped. After a few months of vacancy, Jack started to feel restless due to the ongoing maintenance and double costs. In his search for a solution, he came across Interhouse.
Advice on temporary letting through the Vacancy Act
We suggested to temporarily rent out the property through the Vacancy Act. This way, the costs would be lessened with the rental payments and the property could stay on the market. When a suitable buyer is found, the tenancy agreement could be terminated and the property sold.
Applying for a Vacancy Act permit: what you need to know
To let a property through the Vacancy Act, you have to apply for a permit with the municipality. The application form can be submitted with the required documents, after which the municipality will make a decision regarding the request. Once assigned, the permit has to be included in the tenancy agreement.
The most important conditions for letting a property that’s also for sale through the Vacancy Act are;
- The property must be vacant;
- The property must be for sale or destined for demolition or renovation;
- The property can’t be rented out under other circumstances or be occupied by the owner;
- The permit is assigned for a maximum of 5 years for properties for sale and a maximum of 7 years for properties destined for demolition or renovation;
- The tenant doesn’t have rental protection as meant in the normal legislation;
- The tenancy agreement has to have a minimum rental period of 6 months and landlord has a notice period of 3 months, where tenant has a notice period of 1 month.
Example: temporary tenants through the Vacancy Act
Interhouse met an older couple that had just sold their home and were waiting for their new apartment to be finished. Because this was taking longer than expected, they decided to look for a temporary solution. When we showed them pictures of Jack’s ‘tiny house’, they were very excited! The rental conditions weren’t a problem for them; after their apartment was finished, they would move anyway, so the temporary period and lack of rental protection wasn’t a problem for them. A viewing followed soon after, as well as a meeting with Jack. After a detailed screening and signing the tenancy agreement, the hand-over of the keys followed.
Advantages of temporary letting through the Vacancy Act
For Jack, it was a huge relief that his ‘tiny house’ was rented out. Especially when a buyer was found a few months in! He terminated the tenancy agreement with the legal notice period, the tenants moved to their brand new apartment and the ‘tiny house’ was sold to the buyer.
Do you have a vacant property, that’s for sale or destined for demolition or renovation? Then (temporary) letting through the Vacancy Act might be a good option! It prevents or limits vacancy and generates an income to help cover the costs. Reach out to one of our offices for advice.
