Landlords use old trick to get around temporary rental ban

The Parool newspaper reported yesterday on an Amsterdam landlord who used an old trick to still be able to rent out his home temporarily.

Since July 1 last year, temporary rental agreements have been prohibited, with a few exceptions. This was because they contributed to rising rents and uncertainty among tenants. This often forced tenants to look again for a – usually more expensive – home. We wrote about this earlier in our article: fixed-term housing rentals.

The method revolves around offering properties as fully furnished, hotel-like lodgings. This not only allows landlords to charge significantly higher rents, often up to three times as much, but also allows for temporary contracts. This approach potentially threatens legislation introduced last year (https://www.flib.nl/wet-vaste-huurcontracten).

Emerging trend

According to the !Woon foundation, which advocates for tenants’ rights, this does not appear to be a single situation, but a broader trend in which landlords are getting creative with the law. They are using agreements intended for situations of a “brief nature.”

Imre Doff, a lawyer with the !Woon foundation, warns that these developments could lead to further erosion of the rules.

Case example

Earlier this week, a case was heard by the Rent Commission. This concerned an Italian tenant who rented a 34-square-meter apartment under a shortstay contract for €1850 per month, while the maximum rent for a regular contract would be €633.

The tenant decided to go to the Rent Commission after realizing that the construction might be illegal. However, the commission ruled in December that it could not rule on the matter, after which the tenant, with the support of the !Woon foundation, asked for a review.

A spokesman for the municipality stressed that temporary rentals are subject to strict rules. “What this landlord is doing is not allowed. If it turns out that the Rent Commission has no jurisdiction, we will consult with the state about better enforcement.”

Legal discussion

At a new hearing, the landlord’s lawyer argued that the agreement is legally correct and that the rental is more like a hotel concept than regular rent. According to the lawyer, the construction is intended to support expats in their search for permanent housing.

The lawyer also pointed out that the tenant had agreed to the terms during a video interview. When the Rent Commission asked if there was improper use here, it denied it.

Smart construction

The !Woon Foundation expresses concerns about this modus operandi. “There is a clever strategy behind it,” said Doff. “The rental is through a separate limited liability company and includes additional services, such as bike rentals and clean linen, to meet legal requirements.”

It also requires tenants to make a video declaration waiving rent protection. In addition, tenants may not cancel the agreement within six months.

Although short-stay contracts have a maximum duration of six months, an annual contract such as the one in this case cannot be directly fined. This makes it difficult to enforce enforcement, said Doff: “It is clear that this construction was deliberately set up this way.”

Advice

Do you have questions about the above developments or do you have other legal questions about tenancy law? Our specialized lawyers will be happy to assist you. Please contact one of our attorneys by email, phone or fill out the contact form for a free initial consultation.  We are happy to think along with you.