We often get asked how a tenancy agreement for a residential property can be terminated. Our answer is always that this depends on the type of tenancy agreement parties have entered into. There are three main categories of residential tenancy agreements:
- Tenancy agreements for an indefinite period;
- Tenancy agreements for a definite period;
- Temporary tenancy agreements for specific groups, provided by general administrative order.
In addition, there are less frequently used tenancy agreements, such as room and landlady rental, short-term rental and rental based on the Vacancy Act. These categories are not discussed here. For more information on these types of agreements, we refer to the articles on our website: Blog – GMW lawyers
1. Tenancy agreement for an indefinite period
In practice, many tenancy agreements are entered into for an indefinite period. Such agreements may only be terminated by the landlord based on one of the statutory grounds for termination, as specified in Article 7:274, paragraph 1, of the Dutch Civil Code. The notice period for a landlord is at least three months. Every year that a tenant rents the property, the notice period extends by one month, with a maximum of six months.
A tenant can terminate a tenancy agreement for an indefinite period without providing a reason. The notice period for the tenant is equal to the period between two payment days, with a maximum of three months. In practice, this usually means that the notice period for the tenant is one month.
Minimum period
The landlord and tenant can agree that neither party may terminate the agreement during a specific period. In that case, the agreement is for an indefinite period, with a minimum period. Such an agreement provides both parties with the certainty that the agreement will continue for at least, for example, one or two years. A minimum period is not required.
2. Tenancy agreement for a definite period
A tenancy agreement for a definite period of time is very similar to an indefinite tenancy agreement, albeit that neither party can terminate the agreement prematurely. The landlord can terminate the agreement as per the end of the agreed-upon rental period by invoking one of the statutory grounds for termination (Article 7:274, paragraph 1, DCC) and while complying with a notice period of three to six months. A tenant may also terminate the agreement by the end of the agreed term, provided they comply with a notice period of (usually) one month.
The tenancy agreement for a definite period can be extended for a further period. In that case, however, the agreement automatically extends for an indefinite period.
3. Temporary tenancy agreements for specific categories
As of July 1, 2024, the Fixed-Term Tenancy Act has taken effect. Previously, it was possible to enter into a temporary tenancy agreement with any tenant. As of July 1, 2024, the standard rule is that tenancy agreements are entered into for an indefinite period, with all the associated consequences (see above). Only with certain, by law-provided categories, may a temporary tenancy agreement be entered into.
Specific categories
The Decree on Specific Groups for Temporary Tenancy Agreements lists eight categories of tenants with whom temporary tenancy agreements may be concluded:
- International students or students temporarily living in another Dutch municipality;
- Tenants temporarily relocating due to renovation;
- Individuals from social shelters or those in emergency housing situations with a proven urgent housing need;
- Tenants with whom a second-chance tenancy agreement is made;
- Surviving relatives of a deceased tenant;
- Tenants with minor children who wish to remain near their children after separation;
- Tenants temporarily relocating to the Wadden Islands for work;
- Tenants with a residence permit who previously stayed in a COA reception center while awaiting permanent housing.
For these categories, a temporary tenancy agreement can be entered into for a maximum of two years. A landlord cannot terminate such an agreement prematurely; a tenant can. The landlord can terminate the agreement only as per the end date, by informing the tenant a minimum of one month and a maximum of three months before the agreed-upon end date, that the tenancy agreement will end on the end date and that the tenant is obliged to vacate the property before then. A tenant may terminate the tenancy agreement at any time, while complying with a notice period of (usually) one month.
Note that if a temporary tenancy agreement is concluded with a tenant who does not fall within one of the aforementioned categories, the agreement is considered indefinite (see above).
Read Also: Terminating a Fixed Energy Contract in the Netherlands Early? Watch Out for the Price Tag!
Do you have questions?
If you have a question or require more information about terminating a tenancy agreement, please visit our Real estate and Tenancy Law pages or contact our experts for assistance.
Written by Zoë Ris