No more temporary rental agreements for housing

On Nov. 14, 2023, the Senate passed the Bill on permanent leases. When the law enters into force, it will no longer be possible for landlords – barring exceptions – to rent out housing for a fixed term. The possibility of concluding temporary rental agreements of up to 2 years for independent housing and up to 5 years for non-independent housing will cease to exist.

Exceptions
When the law enters into force, temporary housing rental will remain possible only if:

• the landlord or previous tenant wants to reoccupy the rental property under a prearranged diplomatic clause;
• rented out to target groups such as young people, students, PhD students, the elderly and large families;
• the rentals are by their nature short-term, such as vacation rentals;
• rented out to prevent unnecessary vacancy under Articles 15 and 16 of the Vacant Property Act (leegstandwet);
• rented out to people belonging to categories of persons specified by order in council. This may include tenants who are temporarily living in the Netherlands for their studies.

Existing leases
The upcoming legislation only covers leases concluded after the legislative amendment has come into effect.

Entry into force
Initially, the intended date of entry into force was 1 January 2024, however this has been postponed. The exact date of entry into force is not yet known at this moment and will depend on the duration of the establishment procedure of the order in council referred to in (amended) article 7:271 paragraph 2 of the Civil Code. The government is striving for a speedy entry into force of the law. The target date for now, is July 1, 2024.

Questions?
If you are wondering how the Bill on permanent leases will affect you, do not hesitate to contact us.