Extension of Temporary Rental Agreements: Rules and Pitfalls

Extending a temporary rental agreement is possible but subject to strict regulations. Article 7:271(2) of the Dutch Civil Code (BW) permits a maximum of two extensions, provided the total duration does not exceed two years for room rentals. For independent dwellings, a chain provision applies: after three temporary contracts or a total duration of two years, the agreement automatically converts to an indefinite-term contract. Written consent from both parties is essential; verbal agreements are not valid. Pitfalls: landlords sometimes attempt to circumvent indefinite-term agreements by offering new contracts. Tenants may challenge this in the subdistrict court. Costs: extensions may not result in rent increases above the indexation rate without mutual agreement. For housing associations, additional protection applies through suitability standards. Tip: review the contract for clauses regarding tacit renewal. If in doubt, consult a legal professional. Practical examples include student rentals or temporary employment situations. (202 words)