Extension of temporary lease agreements (model B) soon possible?

13-4-2021 — 

Temporary rental of independent living space
Since 1 June 2016, it has been possible to temporarily rent out an independent living space for a maximum of 2 years, and a non-independent living space for a maximum of 5 years. This is done with a lease contract model B.

With this model lease agreement you can currently rent out your home (s) for a maximum period of 2 years, without the tenant building up tenancy rights. A great solution if you are f.i. thinking about selling the house in the long term, if you are going to (try to) live together or if you have bought the house for one of your children who is going to study in the long term.

You do not have to rent out for the maximum 2 years, it is also possible for a shorter period. As long as you do not rent out for longer than 24 months, not even 24 months and 1 day. However, if you want to extend the temporary lease at the end of the agreed period, it immediately becomes an agreement for an indefinite period. This is undesirable for many landlords for various reasons. The only solution, if you do not want the lease to be indefinite, is to terminate the lease at the end of the lease period. This can be annoying for both tenant and landlord. Because what do you do if the tenant asks, for example, whether he can stay for a few months after the agreed period while waiting for another house or something like that?

In practice, it appears that more situations arise where the need may arise to extend a temporary contract without losing the temporary nature of the contract. The current ban on (temporary) extension of temporary rental makes this option very difficult.

Another disadvantage of this contract type
There is currently another disadvantage in this model B; the landlord must adhere to the agreed rental period. However, the tenant can cancel the rent prematurely from day 1 per calendar month. Of course, no landlord is waiting for this.

Bill concerning extension
A bill has now been submitted, with the aim of making extension of these temporary lease agreements possible. When this law is passed, it will be possible to extend a temporary lease once with a maximum of 1 year, up to a (total) maximum of 3 years for independent homes and 5 years for non-independent homes. A condition for extension is that the lessor has not failed to comply with the notification obligation; you must cancel the rent with the tenant between 3 and 1 calendar month (s) before the end of the agreed rental period.

In addition, the bill provides the option of agreeing a minimum duration at the same time. For example, you initially agree on a maximum rental period of 2 years with the tenant, and at the same time a minimum rental period of 1 year. As a landlord, you are thus assured of rental income for a minimum rental period.

If this bill is definitively adopted, it is also expected to have retroactive effect for already extended, temporary lease agreements.

Better for tenants and landlords
On the one hand, the bill guarantees more housing security for tenants  for a longer period of time. On the other hand, landlords are accommodated because they can agree on a minimum duration of the lease with the tenant. The legislator hopes that this will make more temporary rental homes available.

The bill was passed by the Lower House on March 12, 2021. It is not yet known when the first chamber will handle this at the time of writing this message.
Update July 2021: the proposal has been rejected!