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Real Estate: More options for temporary lease

Publication date 16 February 2016

On 9 February 2016, the Lower House of the Parliament adopted the bill on rental market flexibility, under which the options to offer temporary leases were extended. These options will largely disappear from 1 July 2024. What does that mean for you?

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Rental market flexibility

The Rent Market Transition Act entered into force on 1 July 2016. The idea behind this Act was that home owners would be more likely to offer residential properties for rent. As the Act led to a deterioration rather than an improvement in the position of tenants, these changes have largely been reversed. An overview of the situation as of 1 July 2024, can be found in our blog on the restriction of temporary letting options.

Rental Market Flexibility Act

Temporary tenancy agreements

There will be a lot more options to conclude temporary tenancy agreements:

  • Introduction of the option to let accommodation in the liberalized housing sector for a maximum period of 2 years (or shared accommodation for a maximum period of 5 years), with automatic termination of the lease.

The possibility of agreeing that a temporary rental agreement for a property will end by operation of law will largely disappear from 1 July 2024. Only in a limited number of cases temporary letting of up to 2 years will still be possible. However, the following changes will remain in force:

  • Extension of the scope of the Diplomats’ clause, so that home owners who leave their accommodation temporarily – for instance due to a stay abroad – will be allowed several short-term lessees consecutively and the period of the lease can be extended in the interim.
  • Broadening of the option of the lessor to terminate the lease if the lessee no longer belongs to the target group for which the property was meant. In addition, there will be more target groups than before, such as adolescents, doctoral students and large families.

More information?

Would you like to know more about temporary renting and letting accommodation or do you have any other questions on real estate? The specialists at Russell Advocaten will gladly give advice. Please contact us:

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