Understanding the Market
In the Netherlands, there are four main types of rental agreements. The choice of contract is determined by the landlord, not the tenant. Without getting too deep into legal details, let's cover some basic information you should be aware of.
Model A — Indefinite Period
Based on the data of uprent.nl, this type of contract is the most common and offers the greatest security for tenants. It establishes a lease for an indefinite period.
Typically, during the initial 12 months, the agreement cannot be terminated by either the tenant or the landlord. After this period, the tenant has the right to occupy the property indefinitely and is allowed to terminate the lease at any time, provided they give a one-month notice. The landlord is generally unable to terminate the agreement without substantial reasons (and even those often must be validated in court).
Model B — Fixed Period, Max 2 Years
Unlike the indefinite period contract of Model A, this agreement has a clear start and end date for the tenancy, which can range from a few months to 2 years, depending on the agreement between the tenant and landlord.
Tenant can terminate an agreement at any time, with one-month notice. The landlord cannot terminate the rental agreement.
By the end of the lease, the landlord must inform the tenant if they want the tenant to vacate the property. If both parties agree to extend the tenancy, or if the landlord does not issue a vacate notice, the contract automatically transforms to a Model A - Indefinite Period Agreement (and then you can occupy the property practically forever).
Model C — Fixed Period with Diplomatic Clause
Model C agreements are specifically designed for situations where the landlord intends to return and occupy the property at a future date, which remains uncertain.
The landlord sets a definite lease term (for example, 14 months). If the landlord’s circumstances change and they decide to extend their absence, they have the option to propose an extension of the lease term to the tenant.
Similar to the structure found in a Model A agreement, there is an initial period where neither party can terminate the lease early. After the initial fixed period, the tenant can terminate the agreement with a one-month notice. The landlord then is allowed to terminate the lease with a three-month notice, this feature is called the Diplomatic Clause.
Model D — Temporary Under the Vacancy Law
The Vacancy Act tenancy agreement model is intended for the situation that the property is for sale.
This agreement is signed for a fixed duration. After the initial six months, the tenant has the flexibility to terminate the lease with a one-month notice. The landlord can terminate the agreement at the end of the fixed term by giving a three-month notice.
Extending this type of lease can be difficult. The landlord must obtain a new permit from the local municipality (Gemeente) to continue renting the property under this law.