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…
The Fixed Rental Contracts Act has been in force since 1 July 2024. This new law states that temporary leases for residential accommodation are no longer permitted in most cases. The Fixed Rental Contracts Act will enter into force on 1 July 2024 and the rules are laid down in the Civil Code, in particular in Book 7. For many landlords, this means a fundamental change in the way they manage their properties. However, there are still some routes to rent out homes temporarily, provided that they fit within the exceptions of the law or fall under specific regulations.
In this article you can read what options there are for temporary rental in 2025, what the conditions are and what you should pay attention to as a landlord. Together with the new Affordable Rent Act, the Fixed Rental Contracts Act further tightens the rules for rental agreements and fixed rental agreements, changing the legal position of tenants and landlords.
Introduction
The Fixed Leases Act, which came into force on 1 July 2024, has radically changed Dutch tenancy law. With this new law, the starting point is that tenants get more security and stability by offering fixed leases instead of temporary leases as standard. This means that temporary rental contracts are only allowed in exceptional cases. As a result, both landlords and tenants have to adapt to the new rules on rental contracts. In this article, we discuss the possibilities and limitations of temporary rental contracts under the Fixed Rental Contracts Act, and what these changes mean for everyone involved in rent.
Permanent contract as the norm
Since July 1, 2024, the Fixed Rental Contracts Act has been in force, making fixed rental contracts the standard for new tenants. This means that landlords are in principle obliged to offer a permanent rental contract, unless there is a specific exception included in the law. With this change, the legislator wants to offer tenants more certainty about their living situation and prevent people from having to move unnecessarily often. For landlords, this means that they may only enter into a temporary rental contract in special cases. The law clearly regulates when an exception is possible, so that both landlords and tenants know where they stand. This creates more clarity and certainty on the rental market.
Exceptions to the Fixed Rental Contracts Act
Although the starting point since 1 July 2024 is that rental contracts are standard for an indefinite period, the legislator acknowledges that there are special situations in which temporary rental is desirable. In these cases, as a landlord, you may enter into a temporary rental agreement or fixed-term contract:
Permitted exceptions:
• Students: a temporary rental agreement is possible for students who are temporarily studying in the Netherlands for their studies, including international students. This also applies to students who are temporarily living in another municipality for their studies (study temporary, studying in the Netherlands, student).
• Temporary relocation due to urgent work or renovation of one's own home, where the connection with urgent work is the reason for temporary rental (urgent work or renovation, connection with urgent work).
• Temporary rental agreements for non-self-contained accommodation: A maximum rental period of five years applies to non-self-contained accommodation (non-self-contained accommodation, maximum rental period).
• Social shelter: urgent home seekers and persons from social shelters or social emergencies, in which the municipality concerned plays a role and the situation applies that they were staying in a reception centre immediately prior to the tenancy agreement (urgent home seekers, persons from, municipality concerned, immediately prior).
• Second Opportunity tenants: persons whose previous lease has been terminated, for example due to serious nuisance, and who enter into a second chance lease under supervision (enters into a second chance lease, serious nuisance, previous lease).
• Orphans between 16 and 27 years of age: young people who continue the lease after the death of their parent (the main tenant). In the case of a deceased tenant, the right to continue living may apply to young people (deceased tenant, continuing to live).
• Divorced parents who temporarily live separately to stay close to their children. This applies in particular to parents with minor children, where the interest of children wanting to continue living in a familiar environment is central (minor children, children want to continue to live, continue to live).
• Wadden Island workers: employees who temporarily perform work on Vlieland and need housing for which temporary housing is necessary (work temporary, vlieland need housing, temporary housing).
• Permit holders/status holders who temporarily are placed out of a COA location pending permanent housing.
• Temporary rental agreements for people who temporarily live in another municipality for work or study, whereby they rent housing in that other municipality (other municipality, renting housing).
• Private landlords: temporary rental agreements can be offered by private landlords to specific target groups, such as migrant workers, students or status holders (private landlords).
In these cases, temporary rental is allowed, often for the duration of the situation (e.g. for as long as the study lasts, or as long as there is shelter). It is important that the contract is well substantiated, with supporting documents and clear agreements.
Importance of correct substantiation
For each of these exceptions, it is crucial that you properly document the reason for temporary rental and record it in the rental contract. It is important to clearly state the agreed end date and the agreed period in the contract (agreed end date, agreed period). In case of doubt, the Rent Tribunal or judge can determine whether the contract has rightly been classified as temporary. Therefore, make sure you have clear motivation, underlying documents (e.g. enrolment in study, renovation plan, or proof of COA placement), and a clear end date or condition for termination.
In addition, as a landlord you are obliged to inform the tenant in writing at least three months before the end of the contract (three months). Pay attention to the rules regarding termination of rent and premature termination: in the case of a temporary rental agreement, the tenant may terminate prematurely, the landlord may not (terminate the lease, terminate prematurely). If the rental contract is extended, a rental contract for an indefinite period is automatically created (rental contract extended, rental contract for an indefinite period). Since 1 July 2024, a new tenant will automatically receive a rental contract for an indefinite period, unless there is an exception (new tenant will receive).
The Affordable Rent Act affects the affordable rent for temporary rental agreements, so that rents remain within limits (affordable rent). Exceptions to the fixed tenancy agreements can be established by means of a general administrative order (general measure). In some cases, having a long-term joint household is relevant for the right to continuation of the lease (long-term joint household).
Finally, it is important to distinguish between temporary leases and fixed leases, where fixed leases are the standard and temporary contracts are only allowed in exceptional situations (fixed leases).
Temporary rental with a vacancy permit
Another option is temporary rental via a vacancy permit. This regulation stems from the Vacancy Act and makes it possible to rent out homes temporarily without full rent protection applying. In this case, the landlord concludes a rental agreement or temporary contract with the tenant. These leases are subject to specific conditions laid down in the Vacancy Act.
What is a vacancy permit?
A vacancy permit is intended for specific situations in which a home or building is temporarily not used as a main residence. Think of a house that is for sale or a building that will be demolished or renovated in the long term.
Types of housing for which a permit can be granted:
Buildings awaiting new use, such as nursing homes, overnight accommodations or school buildings.
Homes for sale, including:
• New-build homes that have never been inhabited.
• Homes that were occupied by the owner in the year before vacancy.
• Homes that have been rented out for a maximum of three years in the past ten years.
• Rental homes intended for demolition or renovation.
• Rental homes intended for sale, provided that the conditions are met.
Rental period and costsThe permit is issued for a maximum of 5 years for sale homes. For rental properties for sale, the starting term is 2 years, with a maximum of 3 extensions of 1 year. The costs for an application are a one-off € 122.00, excluding any costs for municipal assessment or administration.
Advantages of a vacancy permit:
• Limited rent protection for tenants.
• Flexible notice period for landlords (minimum 3 months).
• No automatic extension to an indefinite period.
Please note: you must apply for the permit from the municipality where the house is located. Without a permit, regular tenancy law applies and the tenant enjoys full protection.
The Diplomat Clause
An often overlooked option is to include a so-called diplomatic clause in a rental contract. This clause is specifically intended for landlords who are temporarily absent, for example because they are temporarily moving abroad for work, study or another reason and want to return to their home in the long term.
What does the so-called diplomatic clause entail?
It is a provision that allows you as a landlord to terminate the rental contract as soon as you return to the Netherlands. The tenant knows in advance that it is a temporary rental on the basis of a temporary contract and that the property must be available to the owner again after a certain period of time.
Conditions:
• The reason for temporary absence (e.g. work, study, internship or long-term trip) must be clearly stated in the contract.
• It is always a temporary contract, in which the maximum duration and conditions are determined in advance.
• The return must be plausible and the term must be known to the tenant in advance.
• The termination must be announced in writing, taking into account the notice period (usually 3 months).
• Termination must be given in time, preferably by registered letter.
Be careful with this clause
Although the so-called diplomatic clause offers protection, it is essential that you draw it up in a legally correct way. In practice, a poorly worded clause can lead to the court ruling that there is still a contract for an indefinite period with regular rent protection. Consider legal advice when drafting the contract.
Sustainable joint household
One of the exceptions to the ban on temporary leases is the situation in which there is a permanent joint household. This means that two or more people live together and run a household together that is intended for a longer period of time. If one of these people has a temporary rental contract, the landlord can also offer a temporary rental contract to the other person under certain conditions. This is relevant, for example, when there is an urgent need, such as a temporary reception situation or a transitional phase in the housing need. The exception is intended to provide flexibility in situations where it is not desirable or possible to immediately offer a permanent rental contract, while there is a long-term joint household. It is important that the landlord can properly substantiate the reason for the temporary rental contract and that the agreements are clearly recorded in the rental contract.
Final housing
Another exception where a temporary rental contract is possible occurs when a tenant has found permanent accommodation in the short term, but temporarily needs other accommodation. This may be the case, for example, if the new home is not yet available, or if there is a demonstrably urgent need for housing. In this situation, the landlord may offer a temporary rental contract, so that the tenant still has accommodation in the intervening period. It is important that the temporary nature of the rental contract is clearly recorded and that there is evidence of the urgent need for housing. This prevents the temporary rental contract from unintentionally turning into a contract for an indefinite period. This exception offers a solution for tenants who temporarily need other accommodation while waiting for their permanent accommodation, and gives landlords the opportunity to respond flexibly to special housing demands.
Alternative solutions and creative constructions
Although the law has severely limited the possibilities for temporary rental, some landlords are looking for alternative solutions within the limits of the law:
a. Loan agreement
In some cases, a house is given "on loan" instead of rented out. On loan, the owner makes the house available free of charge, without paying rent. This construction is often used for anti-squat objects. Advantage: No rent protection for the user. Disadvantage: No rental income and limited legal enforceability.
Please note: as soon as there is a consideration (for example a fee), it can still be seen as a temporary rental agreement or temporary contract.
b. Short stay rental (maximum 90 days)
In certain municipalities, short stay rental is allowed for periods of up to 90 days, usually for expats, tourists or temporary workers. This is often done through a temporary contract. Municipalities such as Amsterdam have strict rules for this. Always check local policies.
In some municipalities, a registration obligation or permit is required.
If the term is exceeded, there may still be regular rent protection.
Importance of clear communication and good administration
Whether you work with a diplomatic clause, a permit or one of the permitted exceptions: it is very important to record all agreements regarding the rental agreement or various rental agreements in writing. A well-drafted contract, with clauses that comply with the law, prevents subsequent conflicts and legal proceedings.
Always document:
• The nature of the exception or permit.
• The expected end date or termination condition.
• The reason for temporary rental.
• The termination procedure and term.
• Any documents to substantiate it (study certificate, COA form, renovation plan, etc.).
Conclusion
The Fixed Leases Act marks an important shift in Dutch tenancy law. Temporary leases have been the exception instead of the norm since 1 July 2024. However, there are still possibilities for temporary rental, provided that you act within the framework of the law as a landlord. Temporary rental agreements and the temporary contract remain possible for specific situations; It is important to choose the right rental agreements that suit your situation and the applicable regulations.
The three main routes are:
• Exceptional cases such as students, status holders or divorced parents.
• Vacancy permits, where the property is temporarily rented out with limited rent protection.
• Diplomatic clauses, especially for landlords who temporarily move abroad.
• Other alternatives, such as loan agreements or short stay rental, are only useful in specific cases and require extra attention to regulations and local requirements.
By thoroughly studying the legal options and carefully documenting, you as a landlord can still use temporary rental in the era of fixed leases — in a legal and responsible manner. Would you like to know more about this? Please contact us, we are happy to help you!