Leasing: What types of tenancy agreements are there?

In general, two types of tenancy agreements can be distinguished: permanent and temporary tenancy agreements.

Permanent tenancy agreements are entered into for an indefinite period of time. Most tenancy agreements for housing are permanent tenancy agreements that are automatically extended after the initial lease term of one year.

It is, however, also possible to enter into a temporary tenancy agreement. Landlord and tenant can agree upon such a tenancy agreement for a fixed period that  terminates automatically and with less legal protection, provided that:

• The term of the lease is a single, non-extendable period of time of up to two years (for a separate residential dwelling or space) or up to five years (for a room); and
• The landlord gives written notice of the termination date somewhere between three months to one month in advance of the termination date.

If the tenancy continues after the fixed period or if the landlord does not give notice (in time), the tenancy automatically becomes a permanent tenancy agreement with full rent protection for the tenant.

In some cases the landlord may conclude a temporary tenancy agreement that is longer than two years, namely if the tenancy agreement includes a so-called diplomat clause.