Are you moving abroad and considering temporarily renting out your home with a diplomatic clause?

Many landlords choose to rent out their property temporarily when they move abroad for work, study, or an extended holiday. In such cases, renting out your home can be a smart way to cover your mortgage costs and avoid leaving the property unoccupied. By opting for a temporary rental, you as the landlord retain the right to reclaim the property upon your return and move back in.

But what exactly does this process involve if you want to rent out your home temporarily? In this article, we’ll go over a few key points to consider to ensure everything goes smoothly.

Introduction

The Dutch housing market is constantly evolving, with new legislation affecting both landlords and tenants. A major development is the introduction of the Permanent Rental Contracts Act (Wet vaste huurcontracten), which has been in force since July 1, 2024. This law has implications for the way properties are temporarily rented and impacts the rights of both renters and landlords. In this article, we explain the different aspects of temporary renting, including the diplomatic clause (diplomatenclausule) and the Permanent Rental Contracts Act.

Why rent your property temporarily?

Temporary rentals are popular among people who temporarily leave the Netherlands—whether for work, study, joint living arrangements abroad, world travel, international assignments, or while their property is on the market. Renting out your property prevents vacancy, covers running costs like mortgage payments, VvE contributions, and maintenance, and ensures the property remains occupied and cared for. If your stay abroad is extended, it's possible to agree with the tenant to extend the rental period, provided that this is clearly recorded. However, a key concern is assuring that you can move back into your home without issues. That brings us to the diplomatic clause.

What is a diplomatic clause?

A diplomatic clause is a provision added explicitly to the rental agreement, allowing the landlord to terminate the lease upon return to the property. It is designed for situations where the landlord temporarily resides elsewhere (often abroad) and intends to return. The agreement specifies a fixed term—such as 12 months—during which termination is only possible at the end of that term. The tenant has the right to stay until that agreed end date. Termination requires observing the statutory notice period, typically a minimum of three months, depending on the duration of the lease. Early termination is only possible if both parties agree or if additional clauses provide for it.

For example, if you go to the U.S. on a one-year work assignment and sign a 12-month lease starting January 1 with a diplomatic clause, you cannot terminate it after six months unless the tenant consents. Additionally, you must demonstrate genuine need—the clause won’t hold if you no longer genuinely need the property (for example, if you have since moved in with a partner in the Netherlands). If your foreign assignment ends and you truly require the property again, you may pursue termination via the subdistrict court if the tenant does not cooperate. Once the initial term expires, and the tenant moves out, you can reclaim the property.

Similarly, tenants cannot terminate the contract mid-term during the initial lease period unless explicitly agreed. If the contract is extended, the tenant then gains a one-month notice period. Failing termination at the end of the agreed term may result in conversion to a permanent lease under the new legislation. Time-limited leases without a diplomatic clause that are not formally ended automatically convert into an indefinite-term lease.

Permanent vs. temporary contracts

Under the Permanent Rental Contracts Act, the default assumption is that residential tenancy agreements are concluded for an indefinite period. Temporary contracts remain permissible only in specific cases—such as when the landlord can reasonably expect to require the property back at a later date. When such cases occur, a clear end date must be included in the contract. Landlords and tenants must understand the rules governing temporary contracts so there are no surprises.

Interim tenancy: an alternative structure

Interim tenancy—often arranged via a diplomatic clause—serves landlords who temporarily leave the Netherlands for, say, work or study. This rental form includes a clause stating the landlord will reclaim the property after a set period (e.g. post-assignment). Clear wording in the contract gives both landlord and short-term tenant certainty and clarity about the rental duration. The diplomatic clause must be precise and explicit to ensure rights and obligations are clearly understood.

Professional property management during absence

Another key consideration is managing your property while you're away. Many property owners opt to work with a professional agency to handle these tasks, saving time and stress. Temporary leases are by nature short and typically suited for specific situations like extended stays abroad.

Property management comes in two forms: financial management and technical management. Financial management covers rental collection, contract administration, and handling late payments or arrears—ensuring steady rental income without your direct involvement. Technical management handles repairs and maintenance, from small fixes to larger coordination efforts, ensuring the property stays in good condition. This arrangement gives you peace of mind, particularly if you're in a different time zone or otherwise unavailable. By planning ahead, making clear agreements, and choosing professional management, you can rent out your home worry-free and easily move back in upon return. Your property remains occupied and maintained, and you reduce financial pressure while abroad.

When is a diplomatic clause legally valid?

For a diplomatic clause to be legally admissible, specific conditions must be met:

1. The reason for temporary renting must be explicit—e.g. assignment abroad, sabbatical, or temporary relocation.

2. The rental must be time-limited, typically for a fixed duration (e.g. 12 or 24 months), with mention of the landlord’s right to return.

3. The clause must be explicitly and clearly formulated, such as:
   “Landlord resides temporarily abroad for work. Upon return, landlord has the right to terminate the lease with two months’ notice.”

4. Termination should occur correctly and in a timely manner, ideally via registered letter, observing statutory notice periods.

5. The landlord must credibly demonstrate their intention to resume living in the property, such as presenting evidence that the foreign assignment is ending.

Notice periods and communication

Although the diplomatic clause allows you to terminate, you cannot ask the tenant to leave overnight. Standard notice periods—usually 1 to 3 months—apply, depending on contract terms. It is important to obtain permission from your mortgage lender and/or municipality before temporary renting. Ensure communication is professional and timely. Consider the tenant’s planning and aim for mutual agreements—good relationships help ensure smooth transitions.

No mid-term termination

In a fixed-term contract, neither landlord nor tenant may terminate early unless the agreement allows it. Both parties are bound by the agreed period unless mutual consent is granted. The diplomatic clause does not act as a fallback mechanism for early exit unless the contractual end date is approaching or the tenant agrees to early termination.

Extension of rental contracts

If a temporary agreement with a diplomatic clause nears its end, both parties may agree to extend the contract. Any extension must be mutually agreed and documented in writing—such as an addendum specifying the new rental period and any revised conditions. This prevents misunderstandings and protects both parties’ interests.

Advantages of renting with a diplomatic clause

• Retain the right to return to your property

• Avoid vacancy and burglary risks

• Offset fixed costs such as mortgage and insurance

• Preserve property upkeep through occupancy

Potential risks

Temporary rental with a diplomatic clause involves legal complexities. Potential risks include:

• Poorly drafted clauses that leave tenant safeguards intact

• Tenant refusing to vacate, requiring legal action

• Tenant neglecting property upkeep

• Mortgage or insurance policies forbidding temporary rental

• Local ordinances or permit requirements—always check with your municipality
   

Six tips for a smooth temporary rental

1. Hire a specialized rental agent for tenant screening, contract drafting, and management

2. Have the lease—including the diplomatic clause—legally reviewed

3. Check your mortgage and insurance terms to ensure temporary rentals are permitted

4. Make clear written agreements on maintenance and communications

5. Arrange property management during absence, including key handling

6. Verify any local permits or rules with your municipality before proceeding

Rental market developments

The Dutch housing market continues to shift due to changing laws, economic trends, and social developments. The Permanent Rental Contracts Act marks a significant change in rental practices. Both landlords and tenants should stay well-informed about their rights and obligations under current rental laws. Professional advice can prevent issues—especially with stricter rules governing temporary rentals and fixed-term contracts—so that both parties enter rental agreements with confidence.

Conclusion

Using a diplomatic clause is an excellent way to temporarily rent your home while you’re abroad, giving you certainty of return and preventing vacancy and financial strain. However, it's essential to understand the legal and practical aspects, including updated legislation related to fixed-term and permanent contracts. Obtain professional guidance, draft a robust contract, and communicate clearly with your tenant so you can travel with peace of mind—knowing your home is occupied, well-maintained, and waiting for your return. If you have questions or want more information, feel free to contact us!