Law on Indefinite Rental Contracts

You might have heard this news before: on November 14, 2023, the Dutch government passed the law ‘Wet op Vaste huurcontracten’. This translates to the Law on permanent Rental Contracts. The law was published on December 1, 2023 and came into effect on July 1, 2024.

Currently, landlords can choose to give tenant an indefinite or a fixed-term rental contract. However, the new law will change this. This means that the majority of rental contracts signed from July 1, 2024 will now last for an indefinite period of time. This applies to both independent and shared residences. 

What does the Indefinite Rental Contracts Law mean?

Starting July 1st, the new standard type of rental contract will give tenants more protection. With this type of rental contract, the landlord will need one of the following valid legal grounds to end the rental agreement:

• Breach of contract: such as not paying rent on time.
• Unnaceptable behaviour: such as severe noise pollution or nuisance.
• Urgent personal use: When the landlord urgently needs the property for his own use. 
• Refusal of new rental contract:  Sometimes it is necessary to sign a new rental agreement. 
• Destination plan: When the purpose of the building changes from living to a different purpose. 

This gives tenants more rights and makes it harder for landlords to terminate the rental agreement. For renters this has a huge benefit: renters can’t be evicted without legal grounds, but will still be able to terminate the rental contract themselves without needing these reasons. 

The law will result in most rental contracts being for an indefinite period of time, and will give many tenants more protection.

Are there exceptions to this law?

However, don’t celebrate too soon. This law will still include exceptions, allowing certain people to still enter into temporary rental contracts for up to 2 or 5 years. If the landlord notifies the tenant of the end date, no more than three months in advance and no less than one month in advance, these short-term rental agreements will automatically end on the agreed end date that’s included in the contract.

The exceptions 

Dutch and international students

Landlords are stil allowed to give temporary contracts to all students. Originally, the plan was to make this exception for international students. However, European law does not allow for such a distinction between Dutch and international students, because it is seen as a form of discrimination. This idea would also give international students an advantage. Landlords would choose international students over Dutch ones because they can end the contract after 1 or 2 years and increase the rent for the new tenant. 

So if you’re studying in the Netherlands it is still possible to get a temporary rental contract for a maximum duration of 2 years. 

Expats

The same goes for expats who (temporarily) work in The Netherlands, who are also an exception category. Expats renting an independent home can receive contracts with a maximum duration of two years. Expats renting a shared home can receive temporary contracts with a maximum duration of five years. 

When will this law take effect?

The new law Wet op Vaste huurcontracten will apply to rental agreements signed on or after July 1, 2024. If you already signed your rental agreement before this date, the new rules do not apply. It will when you sign your next rental contract. This law will also not apply if you signed your rental contract before July 1st,  2024, but move in later, after this date.

Written by law student Lisa Kokèn, Amsterdam 2024