Student accommodation lettings: don’t forget the 9-month trial period!
Since the Fixed-Term Tenancy Act came into force, the basic principle is once again that accommodation is let for an indefinite period. The old standard option of temporarily letting self-contained accommodation for up to two years and non-self-contained accommodation for up to five years has, in many cases, been abolished. This is a significant change for landlords, as choosing the wrong tenancy agreement can have major consequences.
This risk is particularly acute in the case of shared accommodation. The landlord lives in the property themselves and often shares facilities with the tenant. It is not just a question of whether the rent is paid on time, but also of whether living together in one property works out in practice.
It is precisely for this reason that Article 7:232(2) of the Dutch Civil Code offers an important option. This provision allows for a 9-month trial period in shared accommodation tenancies. For landlords, this period can make the difference between a workable arrangement and a situation to which they are tied for years to come.
Why the trial period is so important
Anyone who lets out a room in their own home is allowing someone into their private sphere. This is fundamentally different from letting a self-contained property to someone who lives elsewhere. A landlord letting a room in their own home must be able to trust that the tenant is reliable, honours agreements and respects the shared use of the property.
On paper, a prospective tenant may seem perfectly suitable. In practice, however, it may only become clear after some time whether it actually works out. Consider issues such as sharing the kitchen, bathroom and hallway, noise, visitors, cleaning and day-to-day interactions.
The trial period is designed to assess precisely these practical aspects. The landlord is given the opportunity to see whether the tenant fits in with the property and whether the shared use of the living space runs smoothly. This makes this arrangement particularly valuable for landlords letting rooms to lodgers.
How the trial period works
In the case of subletting, the landlord may terminate the tenancy agreement during the first 9 months without having to invoke a standard statutory ground for termination. This means that, during that period, the landlord does not have to specify, let alone prove, that there is, for example, poor tenancy conduct, urgent personal need or any other specific statutory ground for termination.
This is an important exception to the normal tenancy protection. Normally, a tenant of residential accommodation cannot simply be faced with termination of the tenancy. In the case of ‘hospita’ tenancies, the legislator has recognised that it must first be possible to assess whether cohabitation in a single dwelling is reasonable and workable.
The scheme is not unlimited. The scope to terminate the tenancy without a statutory ground for termination exists only during the first 9 months. Anyone who waits too long may lose this option.
Waiting may cause the option to lapse
The greatest risk for landlords letting to flatmates is that they fail to actively monitor the trial period. If doubts arise about the tenant, their payment behaviour or the relationship between the parties, it is wise not to wait for things to improve of their own accord. Once the first nine months have elapsed, the legal position changes significantly.
The notice of termination must have reached the tenant before the end of the nine-month period. It is therefore not sufficient for the landlord to decide on the final day that they wish to terminate the tenancy. The landlord must be able to prove that the notice of termination was received by the tenant in good time.
For this reason, a standard letter or email carries a risk. The law stipulates that the notice of termination must be served by registered post or by a bailiff’s writ. In practice, a bailiff’s writ is often preferable, as it provides much better proof of when and how the notice was served.
Bear in mind the notice period
Even during the trial period, the landlord must observe the correct notice period. A notice period of 3 months applies to this termination. This means that, whilst the landlord may make use of this special option within the first 9 months, the tenancy will only end once the notice period has expired.
This requires timely action. If the landlord only begins to have doubts late in the trial period, swift action is necessary. Not because the tenancy ends immediately, but because the notice of termination itself must reach the tenant in good time.
For landlords letting to students, it is therefore advisable to mark a clear date in the diary as soon as the tenancy agreement is signed. Well before the end of the nine months, an assessment must be made as to whether the tenancy will continue. If there are any concerns, it is advisable to seek legal advice immediately.
After 9 months, full tenancy protection applies
Once the first nine months have elapsed, standard tenancy protection applies in full. The landlord can no longer terminate the tenancy agreement simply because living together has not gone to plan or because they still have doubts about the tenant. From that point onwards, termination is, in principle, only possible if there are statutory grounds for termination.
For room-to-let tenancies, however, there is an additional ground for termination after that period, set out in Article 7:274(1)(h) of the Dutch Civil Code. In such cases, a balancing of interests may take place between the landlord’s interest in terminating the tenancy and the tenant’s interest in continuing the tenancy. This is, however, fundamentally different from the unrestricted right to terminate the tenancy within the first nine months.
After the trial period, the landlord is subject to the statutory framework. If the tenant does not agree to the termination, the tenancy agreement does not end simply by a letter from the landlord. In that case, legal proceedings are required. Legal proceedings are costly, uncertain and time-consuming. However, once the trial period has expired without being utilised, this can no longer be avoided.
Sometimes the landlord cannot get out of it
If there are no legal grounds for termination, the court may refuse to grant it. In that case, the tenancy agreement continues, even if the landlord finds the situation in their own home stressful. That is why the first nine months of letting to lodgers are so important.
In practice, the risk is high, as landlords often seek help too late. They first try to resolve the issue themselves, make verbal agreements or wait to see if the situation improves. That is understandable, but legally speaking, waiting can be precisely what causes the problem.
It is particularly common for students and private flat leters to underestimate the legal consequences. Letting out a room may seem straightforward, but tenancy protection can become far-reaching after only a short time. Anyone who fails to make good use of the trial period may find themselves stuck with a tenancy agreement that can only be terminated through the courts, or after paying a substantial settlement sum.
Don’t let the trial period pass without making use of it
The trial period for letting a room in your own home is not a mere formality. It is an important legal opportunity to assess whether the tenant is reliable and whether sharing the property works in practice. For landlords letting a room in their own home, this is often the only stage at which adjustments can still be made relatively easily.
It all comes down to timing and due care. Notice of termination must be given correctly, the three-month notice period must be observed, and the tenant must have received the notice before the end of the first nine months. It is precisely on these points that things often go wrong in practice.
Are you a landlord letting a room to a student and unsure whether you wish to continue the tenancy? Or is the trial period due to end soon and do you want to know whether you can still take action in time? If so, please contact us immediately. One of our solicitors specialising in tenancy law can quickly assess what steps are required and how you can prevent a temporary uncertainty from turning into a long-term problem.
