8-4-2020 —
In connection with the corona crisis, the Dutch House of Representatives published the emergency law "temporary extension of temporary leases" on 6 April 2020 and submitted it to the House of Representatives.
What does the emergency law mean?
This emergency law makes it possible to extend temporary rental contracts (model B) by a maximum of 3 months, but no later than 1 September 2020.
The law only applies to rental contracts whose end date is after March 31, 2020 and before July 1, 2020 and applies to both independent living spaces (lease of up to 2 years) and shared accommodations (lease of up to 5 years).
The emergency law ensures that, when such an extension is concluded, the lease automatically ends on the new end date. Please note that you still have to send a "termination notice"!
The tenant will continue to have the option to cancel prematurely and to have the rental price assessed by the rental committee within 6 months after the end of the agreement.
This emergency law is a temporary law that was taken due to disruptive government measures during the corona crisis. Perhaps the period may be extended if it takes longer than expected to curb the corona virus. But for now this is the fixed period.
End of lease notice
With a temporary lease agreement (model B, for a maximum of 24 months), the landlord must always send a letter to the tenant confirming the end date between 3 months and 1 month before the end date. This also applies in the case of a temporary extension. However, in the event of a temporary extension, the letter must now also include the options provided by the temporary emergency law!
Very important, otherwise it can still cause problems.
When can a landlord refuse an extension?
It is important that the tenant only has 1 week after the "end of lease notice" to request the extension to the landlord. If this is not done or not on time, he / she is late. If your tenant requests an extension, you as a landlord do not always have to agree.
By law, a landlord can refuse the extension if:
1. The property has been sold and must be transferred in the extended period;
2. If the house has already been rented to another person;
3. If the landlord wants to occupy the house himself and no longer has any other living space;
4. If the landlord wants to renovate or demolish the house and has already made agreements with third parties for this purpose;
5. If the tenant has not behaved as a good tenant (for example, in the event of rent arrears, nuisance, etc.).
Important: if the landlord has entered into obligations with third parties, then those obligations must have been entered into before 1 April 2020!
Judicial extension authorization
If a landlord does not agree to the extension desired by the tenant, he / she must notify the tenant within 1 week after the tenant's request. If this is not done or not on time, he / she is too late!
The tenant can then request the court to give permission for the extension. Unfortunately, the law does not set a deadline for submitting that request, so the tenant seems to have an opportunity to delay the matter. The court will not grant the tenant's request for the above (serious) grounds for refusal. Unless the interest of the tenant weighs more heavily.
If the landlord has another reason for not agreeing to renewal, he / she must have a compelling interest and must initiate legal proceedings in court. No time limit has been given for the start of this procedure either. As long as the procedure is pending before the court, the tenant can continue to live in the house. An appeal is not possible. However, the Council has undertaken to consider such procedures urgent and to strive for resolution within 3 weeks.
So make sure you send the notice letter to your tenant as early as possible to avoid possible problems!
To which contracts does this urgent law apply?
The urgent law applies to temporary rental contracts whose end date is after March 31, 2020 and before July 1, 2020, and where the landlord has sent an "end of lease notice" on or after March 12, 2020.
Extensions from April 1, 2020 (from a maximum of 3 months to September 1, 2020) that, whether or not in advance of the emergency law, have already been agreed (or are still being agreed) in mutual consultation between the tenant and the landlord, fall under the regime of the law. Provided that the landlord has sent a tenant notice of termination to the tenant before 12 March 2020.
It is expected that the law will enter into force in the very short term and will then work back to April 1, 2020. If the landlord has sent the tenant the written 'end of lease notice' before 1 April 2020, the tenant will have up to 1 week after the entry into force of the law to make a request for extension to the landlord.
Depending on the course of the measures concerning the corona crisis, the minister will keep the option to extend the law until 1 December 2020 at the latest. In that case, more extensions are possible.
Update April 21, 2020: On April 21, this law was passed by the Senate.
Thanks to Hielkema Huurrecht advocaten for their contribution on this topic.
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