Rent out home with diplomatic clause
Planning to go abroad and considering renting out your home temporarily?
More and more homeowners decide to go abroad temporarily for work, study, or adventure. In such cases, renting out your home can be a smart way to cover your mortgage costs and avoid leaving your house empty. But what should you consider when you want to rent out your home temporarily? In this article, we discuss some important points to help you navigate this process smoothly.
1. Diplomatic clause
One of the biggest concerns for landlords who want to temporarily rent out their property is the assurance that they can move back into their home after their time abroad. This is where the diplomat clause comes into play.
The diplomat clause is a special provision in the rental contract that ensures the landlord (you) can terminate the lease when you return to the country. This provides the assurance that you won't be stuck with tenants who refuse to leave, and that you can regain access to your own home when you need it. The diplomat clause also allows you to extend the lease without the tenant acquiring rental protection. However, you must realize that with a fixed-term lease that includes a diplomat clause, neither the landlord nor the tenant can terminate the lease within the agreed rental period without mutual consent. If you want to return to the property, you need to terminate the lease in a timely manner with the tenant. We recommend doing this via a registered letter.
Suppose you go to the United States for work for a year and sign a fixed-term rental agreement with a diplomat clause for 12 months starting on January 1. If your work assignment ends earlier and you inform the tenant after 6 months that they need to vacate the property, this is not possible. Without the tenant's cooperation, you will have to wait until the 12-month term is over. Also, be aware that you must be able to prove urgent personal use. If you no longer need the property because you have moved in with your partner in the Netherlands, it is unlikely that you will be able to evict the tenant (if they refuse to leave). If you genuinely need the property for yourself upon returning from abroad, this can work. However, if the tenant still refuses to leave, you will need to request dissolution through the subdistrict court.
Additionally, a tenant cannot terminate a contract with a diplomat clause during the initial rental period (before any extension). If the contract is extended, the tenant automatically has a one-month notice period.
Fixed-term contracts without a diplomat clause that are not terminated automatically convert to indefinite-term contracts after this period.
2. Professional property management
Another important consideration is the management of your home during your absence. Many homeowners choose to entrust this management to a professional party. This can save you a lot of time and stress, as you won't be responsible for resolving issues that may arise.
There are two main types of property management: financial and technical management.
Financial management means the manager is responsible for rent collection, managing rental contracts, and handling any payment issues or arrears. This ensures timely rental income without you having to chase payments yourself.
Technical management involves maintenance and repairs of the property. This can range from arranging minor repairs to coordinating larger maintenance work. The manager ensures that the property remains in good condition, which is beneficial for both you and the tenants. You won't have to worry about leaking faucets or broken heating systems, as the manager takes care of all these issues.
By leaving the management of your home to a professional party, you, as the owner, are completely relieved of these responsibilities. This is especially convenient if you are in a different time zone or not readily available to address problems. It gives you the peace of mind to enjoy your time abroad without worrying about your property.
By being well-prepared and taking the right measures, you can head abroad with peace of mind. Temporarily renting out your home can be an excellent way to cover your mortgage costs and maintain your property, ensuring that you can move back into your familiar surroundings upon your return.