Written by Loes Barendrecht
From the 1st of July 2024 new rental laws are implemented in the Dutch housing market: The Fixed Rental Contracts Act (Wet vaste huurcontracten). Both for tenants and landlords this new legislation will bring significant changes, aimed to protect the tenants and provide more security. This short article will discuss the main changes, the reasons behind these changes, and highlight potential consequences for students.
Main Changes
From the 1st of July 2024 it is only allowed to offer a rental contract for an indefinite period. Until July 1, 2024, landlords were free to offer fixed term tenancy agreements, these temporary rental contracts automatically end after a set period. However, from July 1, 2024, only permanent rental contracts can be offered. This means that all new rental contracts offered by landlords have to be for an indefinite period. The already existing temporary contracts will remain valid until their end date, but if these contracts are extended, they will be permanent as well.
Exceptions to the Rule
Although permanent rental contracts are now the norm, there are several important exceptions included in a General Administrative Order (AMvB). For specific groups, for example students and urgent housing seekers, it is still possible to obtain a rental contract for a fixed term. However these contracts come with strict rules and can only be for the maximum period of two years.
Reasons for the Changes
The main reasons for the legislation to change was to provide tenants with more security regarding their living situation. Temporary rental contracts can cause uncertainty as tenants often have to move or renegotiate their rental terms at the end of the contract, leading to higher costs. By mandating permanent rental contracts, the position of tenants is strengthened, especially in a stressed housing market as in the Netherlands.
Consequences for Students and International Students
However, particularly for students, the new legislation could have some positive consequences. If the landlord decides to offer a permanent contract, then the law offers more security for students who want to stay in one place longer. They no longer have to worry about finding new accommodation at the end of a temporary contract. This could be particularly beneficial for international students who are often less familiar with the local housing market and have a smaller network to rely on.
But if the landlord decides to offer a fixed contract, students can still benefit from the option of concluding a temporary rental contract for a maximum of two years. This is useful for students who are studying at a particular location for a short period, such as during an exchange program.
Potential Challenges
However there are also some challenges with these new regulations. A possible challenge is that landlords might be less motivated to rent to students, since they have to offer a permanent contract. This could in the long term limit the availability of student housing, especially in cities with high demand for student accommodation.
On top of that, the introduction of permanent rental contracts could lead to an increase in rental prices as landlords try to minimize their risks. Students, who in general do not have a lot of money, may experience additional financial pressure as a result.
In short
The Fixed Rental Contracts Act, effective from July 1, 2024, changes the Dutch rental market. While the law is intended to provide tenants with more security, specific exceptions have been made for certain groups. This legislation will increase housing security for many tenants but may also introduce new challenges, especially for students and international students. It is important for both tenants and landlords to stay up to date about the new rules and understand their rights and obligations.
Source
Changes in rules and regulations in summer and autumn 2024 | I amsterdam. (n.d.). I Amsterdam.
https://www.iamsterdam.com/en/live-work-study/living/whats-changing-in-the-netherlands-in-summer-2024
Ministerie van Algemene Zaken. (2024, July 15). Mag mijn verhuurder mij een tijdelijk huurcontract aanbieden?Rijksoverheid.nl. https://www.rijksoverheid.nl/onderwerpen/huurwoning-zoeken/vraag-en-antwoord/wanneer-kan-ik-tijdelijk-huren
Ministerie van Binnenlandse Zaken en Koninkrijksrelaties. (2024, June 7). Wet vaste huurcontracten vanaf 1 juli 2024 van kracht. Nieuwsbericht | Rijksoverheid.nl. https://www.rijksoverheid.nl/actueel/nieuws/2024/06/07/wet-vaste-huurcontracten-vanaf-1-juli-2024-van-kracht