9 October 2024
Tenants of residential properties can terminate an indefinite-term tenancy agreement without reason, observing a notice period equal to the rental payment term (unless a minimum duration is agreed upon). This does not apply to the landlord.
A landlord can only terminate an indefinite-term rental agreement based on the statutory grounds for termination as set out in Article 7:274 of the Dutch Civil Code. A common ground for termination is that the property is ‘urgently required for the landlord’s own occupancy’. This occurs when the landlord urgently needs the property for himself, when he intends to demolish, or wants to renovate it and this is not possible without terminating the tenancy agreement.
The law imposes three conditions:
The first statutory requirement stipulates that it must involve ‘own’ use. Use by others, such as use by the landlord’s children, generally does not fall under this category unless this is included in the tenancy agreement (please note this is possible per 1 July 2024). Only in very exceptional cases, is use by third parties (such as an employee) qualified as own use if the landlord has a legitimate interest in it. Additionally, the landlord must demonstrate that the use is indeed urgent.
If it is determined that the landlord urgently requires the property for his own occupancy, a balancing of interests takes place. All interests of both the tenant and the landlord are taken into account. For example, factors such as the tenant’s health and age, as well as their ties to the property in terms of family, work, and amenities play a role. The landlord’s interests generally align with the urgent reason for terminating the tenancy agreement. There are also circumstances that could work against the landlord, such as the fact that the landlord has caused the urgent situation themselves, can purchase/rent other suitable accommodation, or owns other properties.
If the balancing of interests is in favour of the landlord, the landlord must demonstrate that suitable alternative accommodation is available for the tenant. Case law indicates that the alternative accommodation does not necessarily have to be identical to the current property. Properties that offer similar living conditions in terms of location and/or size can also be considered suitable. Personal (financial) circumstances of the tenant and local conditions also play a role.
If the landlord’s claim is successful, the tenant can generally claim relocation compensation. This compensation serves as an allowance for the tenant’s moving and redecorating costs.
The landlord is liable for damages if they do not occupy the property after terminating the tenancy agreement, unless this is due to force majeure, for example. The decisive factor is whether the landlord misrepresented his intention to occupy the property himself.
Furthermore, it is relevant that a waiting period is included in the law. If the landlord purchased the property while it was rented out, the buyer/landlord cannot invoke this ground during the first three years.
If you need assistance with terminating a tenancy agreement, feel free to contact me or one of the other specialists at GMW Advocaten to discuss your options.
