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Temporary Rental Contracts Legislation Update: Will the Plan Survive the Senate Vote Today?

14 Nov 2023 at 05:01

It seemed like a race: temporary rental contracts on the housing market would largely disappear. But after approval in the House of Representatives, the plan may still die in the Senate today.

This is because BBB no longer supports the plan, while the CDA also has doubts. Both parties voted in favor in the House of Representatives, but if the two both vote against today, the plan will be off the table.

Residential landlords have been allowed to offer temporary contracts since 2016. This often concerns periods of two years. This was to ensure a greater supply of rental houses. But an evaluation showed that this was not the case.

However, the rules caused landlords to offer temporary contracts to their tenants en masse. These often involve two-year contracts. After that period, the landlord may place a new tenant in his building and significantly increase the rent. With a continuous rental contract, increasing the rent is subject to more rules.

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Dissatisfaction with the growth in the number of temporary contracts

PvdA and ChristenUnie were not happy with the new situation, because it would leave tenants in uncertainty for a long time. That is why the parties took the initiative to amend the law.

They wanted an end to temporary rental contracts, with an exception for when a property is rented to students, for example, or for a short stay abroad. Temporary rental to close family members is also allowed.

After a lot of wrangling in the House of Representatives, there was ultimately a majority in favor of the proposal in May. The CDA did want an adjustment. Couples who want to live together for a while to see if they like it are allowed to rent out a house temporarily. If living together doesn’t work, they can live separately again. The adjustment was made and that convinced the Christian Democrats.

The law would make no sense outside Randstad

The BBB also agreed last spring. But when the bill was debated in the Senate last week, it turned out that the party, which has 16 of the 75 seats in the Senate, withdrew its support.

The law would make renting out homes unattractive and would be of little use, especially outside the Randstad. The party wants an exception for small landlords with a maximum of ten homes.

The CDA also agreed in May, but said last week that it would not simply support the plans during the debate in the Senate. The party first wants to know more about the consequences for the market and the supply of student housing. The CDA does not rule out that students are being pushed out by expats.

Without the two parties, the plan appears to have the support of 34 of the 75 members of the Senate. That is not enough for a majority. If either agrees, there is enough support. The Senate will vote on the proposal today around 2 p.m.

The law only applies to new rental contracts. Existing contracts will not change as a result of the proposal.

2023-11-14 04:01:39
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