Fixed-term lease agreement
The possibilities for temporary rental of residential accommodation have been tightened up in recent years. Whereas temporary contracts were once widely used, nowadays the fixed-term rental contract for an indefinite period is once again the norm. This page provides timeless, practical information about when a fixed-term rental agreement is still possible, how to carefully draft it, and what pitfalls to avoid. This way, as a landlord or tenant, you know where you stand—even if your situation requires flexibility.
Fixed-term leases as the norm
When renting out residential space, the standard is a lease for an indefinite period. The generic option of agreeing new temporary residential leases (up to two years for independent residential space and up to five years for non-independent residential space) has been discontinued for new contracts. This means that you can only conclude a temporary contract within the legal exceptions, such as a diplomatic clause, temporary rental with a permit under the Vacancy Law, an agreement that is short-term in nature, or a target group scheme (including campus contracts).
Stacking short-term contracts (the so-called revolving door construction) is not permitted. If successive temporary contracts are used without a legal basis, you run the risk that the agreement will be valid for an indefinite period and the tenant will have full rent protection.
Independent and non-independent living space
Whether you are renting out an independent dwelling (with its own facilities) or a non-independent living space (room), temporary rental is only possible within the exceptions precisely defined by law. The starting point therefore remains indefinite. This requires careful consideration: when does your situation really require a temporary arrangement, and which route is legally tenable? Prior advice is essential for this consideration.
Notice requirement for older temporary contracts
Did you have or do you have a temporary contract that was concluded under the old regime? Then, as a rule, the notice requirement still applies: the landlord must inform the tenant in writing and in good time that the lease will end on the agreed end date. This notice must be given at least one and at most three months before the end date. If this does not happen (or happens too early or too late), the agreement may continue for an indefinite period. Judges strictly enforce these deadlines. The notice requirement does not apply to new fixed-term contracts; other formal requirements may apply to temporary rentals within the exceptions.
Temporary rental: the routes that are possible
If your situation requires temporary rental, the law still offers a number of clear routes. The options below require careful wording and documentation.
Diplomatic clause and interim rental upon return
Are you renting out your home because you are staying elsewhere temporarily and will return to live in the home yourself? Then a diplomatic clause may offer a solution. It is essential that your own use is specific and clear at the outset, and that your return plan can be substantiated (e.g., with correspondence from your employer or assignment). An eviction clause is often included to ensure that the property is actually vacated at the right time.
Renting out under the Vacancy Law (with a permit)
The Vacancy Law allows for temporary rental with limited rent protection, provided you have a municipal permit. When the permit expires, the lease automatically ends. This route is intended for situations in which living space is temporarily available:
• living space in a building awaiting another use, demolition, renovation, or sale;
• living space in a rental property awaiting demolition or renovation;
• living space in a home for sale (new or existing construction);
• living space in a rental property for sale.
Short-term rental agreement by nature
Sometimes the nature of the agreement is short-term by definition, for example in the case of vacation homes or genuine short stays. This category is very limited and is applied with restraint by the courts. Temporary rentals for regular living are not included here. Only use this when the use is really short. Sometimes the duration of short-stay rentals is limited at the municipal level to, for example, 6 months, a permit is required, and/or this option is restricted by the municipality. Therefore, seek advice in advance.
Target group and campus contracts
Special rules apply to specific target groups. Legally, these are usually open-ended contracts with a special ground for termination: if the tenant no longer belongs to the target group, the landlord can terminate the contract on the grounds of urgent personal use, often with appropriate rehousing. This applies to students (campus contracts), young people, PhD students, the elderly, disabled people, and large families, among others. The clauses and procedures must be precisely correct.
Rent protection
Rent protection also applies to temporary rentals within a legal exception. In the case of regulated housing, the (prospective) tenant can have the initial rent assessed by the Rent Assessment Committee within six months of the start of the tenancy. It is wise to have the points system and maximum rent assessed in advance and to share this information transparently with the tenant. This will prevent discussions afterwards.
Termination and rent protection for fixed-term contracts
Because fixed-term contracts are the norm, early termination by the landlord is only possible if a legal ground for termination applies. The law lists these grounds exhaustively. Examples include poor tenancy, implementation of a zoning plan, failure to agree to a reasonable offer to enter into a new lease agreement, or urgent personal use. If none of the legal grounds apply, the landlord cannot legally terminate the lease. As a rule, the tenant can terminate the lease early, subject to the statutory notice period, unless otherwise agreed within the applicable frameworks.
Urgent personal use: what does that mean?
In the case of urgent personal use, the landlord must have a compelling personal interest in terminating the lease. That interest may also relate to use by another party (e.g., a tenant belonging to a specific target group), provided that the legal conditions are met. This is elaborated in the target group regulations: if the tenant no longer belongs to the target group, termination can take place under strict conditions and, where required, with appropriate rehousing. File compilation and timely, accurate communication are crucial in this regard.
Diplomatic clause and eviction clause: points to consider
A diplomatic clause only works if the temporary absence and return of the landlord are specific and verifiable. Record when and why you are leaving, when you will return, and in what condition the property will be handed over. Where appropriate, combine this with an eviction clause stating how and when the tenant will hand over the property. Consider your position in terms of evidence: agreements and underlying documents can make all the difference in any discussions.
Pitfalls of temporary rentals
• Giving notice too early or too late on older temporary contracts can lead to their continuation for an indefinite period.
• Incorrectly using a ‘temporary’ label without legal basis results in rent protection and can lead to legal proceedings and costs.
• Insufficient documentation in the case of diplomats or target group constructions makes termination difficult and increases the risk of legal proceedings.
• Starting a vacancy law rental without a valid permit or with an expired permit can bring the agreement under the regular regime.
• Stacking short-term agreements without exception is considered a single continuous rental relationship with rent protection.
FAQ
Can I still offer a temporary lease?
Yes, but only within the legal exceptions (diplomatic clause, Vacancy Act, short-term by nature, target groups/campus). For regular rentals, indefinite term is the norm.
Does rent protection also apply to temporary rentals?
Yes. Rent protection continues to apply, even for temporary rentals within an exception. The Rent Assessment Committee can review the initial rent within six months.
What is the notification requirement and when does it apply?
For older temporary contracts, the landlord must give written notice between one and three months before the end date that the contract is ending. This does not apply to new fixed-term contracts, but other formal requirements may apply in exceptional cases.
Can I enter into several short-term contracts in succession?
No. Revolving door arrangements are prohibited. In the case of successive temporary contracts without legal grounds, the lease may continue for an indefinite period.
When should I opt for the Vacancy Law?
If living space is temporarily available pending demolition, renovation, sale, or repurposing. A municipal permit is required; without a permit, you fall back on the regular tenancy law regime.
What does a diplomatic clause entail?
The property is temporarily rented out because the landlord is staying elsewhere and will return to live in the property themselves. The return plan must be specific and clearly documented, often with an eviction clause.
How do I terminate a campus or target group contract?
This is possible if the tenant no longer belongs to the target group and the legal conditions are met. Sometimes suitable rehousing is required. Work with clear clauses and a carefully compiled file.
Tenancy law lawyer Amsterdam
Everything you record in a rental agreement is in principle binding and the legal framework surrounding temporary rentals is strict. It is therefore wise to seek legal advice in good time when drawing up, assessing, or terminating a lease agreement. This will help you avoid conflicting or unenforceable provisions, limit your risks, and safeguard the certainties that are essential to you as a landlord or tenant.
Would you like more information about the possibilities of a fixed-term lease agreement? Do you have questions about diplomatic clauses, target group regulations, the Vacancy Law, or the rent? Or would you like to have a lease agreement drawn up or reviewed? The lawyers at Fruytier Lawyers in Business specialize in all aspects of tenancy law. Feel free to contact us for more information.
Joël de Bruijn
Huurrecht & Corporate Law
Koen Wanders
Merging and acquisition, Corporate Law & Real Estate law