Temporary rental contracts: What options are still available?

Since July 1, 2024, the Indefinite Rental Contracts Act has been in effect, making fixed-term rental contracts legally prohibited in the Netherlands. This represents a significant change in the landscape for both landlords and tenants. However, there are still some options available for renting out properties on a temporary basis…

1. Exceptions to the Indefinite Rental Contracts Act

There are certain groups to whom, as a landlord, you may still offer a fixed-term contract under this new law:

• Students who need to rent temporarily in a different location for their studies than where they normally reside.
• Tenants who need to temporarily live elsewhere due to urgent work or renovation on their home.
• Individuals coming from a social care shelter or those in a social emergency situation who can provide proof of their circumstances.
• Tenants with whom the landlord has entered into a second chance contract: tenants whose previous rental contract was terminated, for example, due to causing severe nuisance.
• Individuals aged between 16 and 27 who take over the lease after the death of their parent or guardian (the primary tenant).
• Parents who are divorcing, can prove they no longer live together, and temporarily rent a home to stay close to their child or children.
• Tenants who work on the Wadden Islands but normally live in another location.
• Permit holders (recognized refugees) who are moving directly from a COA (Central Agency for the Reception of Asylum Seekers) location and are waiting for permanent housing.

2. Vacancy Permit

Another option is renting out property through a vacancy permit.

A vacancy permit allows you as the owner to temporarily rent out your vacant house or building. In this case, a significant portion of the legal tenant protections do not apply.

Do you want to rent out residential space in a property intended for sale? You can obtain a permit for 2 years, after which you can extend it 3 times for 1 year each, up to a total of 5 years.

Do you want to rent out residential space in a property intended for sale? You can obtain a permit for a maximum of 5 years.

You can apply for a permit for the following types of residential spaces:

1. Residential space in a building intended for group housing, care or nursing, lodging, administration, and/or education that is awaiting a new purpose;

2. Residential space in a property intended for sale that:

• Has never been occupied (new construction);
• Was wholly or largely occupied by the owner in the twelve months before it became vacant (or, if the property was completed less than a year ago, has been occupied by the owner since its completion);
• Was rented out for only three years (either fully or partially) in the ten years before it became vacant.

3. Residential space in a rental property intended for demolition or renovation;

4. Residential space in a rental property intended for sale.

A vacancy permit application costs a one-time fee of € 122,00.
 

3. Diplomatic Clause

The diplomatic clause is ideal for homeowners who decide to temporarily move abroad for work, study, or adventure. This clause is a special provision in the rental agreement that allows the landlord (you) to terminate the lease when you return to the Netherlands. It ensures that you won't be stuck with tenants who refuse to leave and that you regain access to your home when you need it. The diplomatic clause also allows the landlord to potentially extend the lease without the tenant gaining full rental protection.

It's important to note that in a temporary lease agreement with a diplomatic clause, both parties cannot terminate the lease without mutual approval. If you, as the landlord, wish to return to the property, you must give notice in a timely manner, preferably via a registered letter.

For a detailed explanation of the diplomatic clause, see this blog post:
https://www.extatehousing.nl/en/news/rent-out-home-with-diplomatic-clause/66574e58c2c40beb74746bb9