Termination of the lease or tenancy agreement

Mandatory lease term and notice of termination of the lease of the commercial space

When leasing commercial space, lessees have a mandatory lease term of 5 + 5 years. The statutory notice period is 1 year and the notice must be given by registered letter or bailiff’s notification.

The parties can also agree on a trial period of 2 years. If not terminated, the lease tacitly becomes a lease for a period of 5 years, whereby the first 2 years are deducted from the first 5 years.

After the first 5 years, the lessor can only cancel on the grounds of poor management by the lessee or urgent personal use by the lessor. Urgent personal use also includes a renovation that is not possible without termination of the lease. The mere fact that a lessor wants to sell the commercial space does not qualify as a reason for personal use.

After the end of the second term of 5 years, the lessor may cancel on the grounds of poor management by the lessee or urgent personal use by the lessor. Termination is also possible on the grounds of a balancing of interests between the lessee and the lessor, a refusal to consent to a reasonable offer to enter into a new lease and because the lessor wishes to realise a designated use under a current zoning plan.

The lessee can always terminate the lease after each period of 5 years, of course subject to the notice period.

If a lessee does not agree in writing to the termination of the lease by the lessor within 6 weeks after notice of termination, the lessor must bring a claim for termination of the lease before the court in order to terminate the lease. The lease continues until the court has ruled irrevocably on the case.

The strict rules for termination only apply if one of the parties unilaterally wants to terminate the lease. Of course, the lessee and the lessor may decide in mutual consultation to terminate the lease by mutual agreement.

Termination of the lease of commercial space and other space (such as office space, storage space)

If a lessee is in arrears and/or late in paying the rent, he is in default. Pursuant to established case law, however, this breach of contract is only a reason to dissolve the lease if there is at least 3 months’ rent arrears.

If the lessee does not agree to a termination of the lease, a lessor can only through a legal procedure ensure that the lease is terminated and the lessee must vacate the leased property.

Eviction protection for other commercial space (such as office space, storage space, practice space, beauty salons)

After the end of a lease of, for example, office or storage space, or a cinema, beauty salon or practice space, the (former) lessee can claim eviction protection for a maximum of 3 years in total. In principle, the lessee shall have eviction protection for two months after the time at which the lessor has given him notice of eviction. If the lessee does not wish to be evicted, he must within those two months request the court to extend the eviction period.

Security of tenure and termination of the tenancy agreement for housing

If you rent or let a house, the rules that apply to the tenancy agreement are often mandatory. This means that the landlord and tenant are bound by the rules. It is also often possible that the tenant can annul a clause in a contract if it is not advantageous for him. The landlord does not have this possibility.

Tenants of living space enjoy security of tenure. This means that a landlord can only terminate the tenancy agreement on the following grounds mentioned in the law:

  • If the tenant does not behave like a good tenant;
  • if the house is urgently required for one’s own occupancy (e.g. renovation);
  • If the tenant does not agree with a reasonable proposal for a new tenancy agreement;
  • becausethe landlord wants to realise a designated use by virtue of a valid zoning plan.
  • If a landlord has more interest in the termination of the tenancy agreement than the tenant has in its continuation.

The notice period is the same as that for the payment of the rental instalments.

For a tenant, this term is not shorter than one month and not longer than three months. For the landlord, the period is not shorter than three months. For each year that the tenant has lived in the house continuously, this period is extended by one month, up to a maximum of 6 months.

Temporary tenancy agreement for housing

Since the introduction of the Flow of the Rental Market Act on 1 July 2016, landlords and tenants can enter into a temporary tenancy agreement that ends without notice at the end of the tenancy period. Previously, a statutory ground for termination was also required in the case of a temporary tenancy agreement.

However, a fixed-term tenancy agreement may only be concluded once; with each renewal, the tenancy agreement is automatically converted into a tenancy agreement for an indefinite period.

When it comes to an independent living accommodation, it can be rented out temporarily for a maximum of 2 years. In the case of non-independent living accommodation (e.g. student rooms), the temporary rental period may not exceed 5 years.

Although no further notice is required for this type of temporary tenancy agreements, the landlord must send written notice to the tenant between 3 months and 1 month before the end of the tenancy period containing the date he wishes to terminate the tenancy agreement. If the landlord does not do so, he is bound by a tenancy agreement for an indefinite period of time.

Another important point is that the tenant can always terminate these types of temporary agreements prematurely. However, the landlord cannot do this.

Termination of the tenancy agreement for housing

If a tenant is in arrears and/or late in paying the rent, he is in breach of contract. Pursuant to established case law, however, this breach of contract is only a reason to dissolve the tenancy agreement if there is at least 3 months’ rent arrears. In that case the lease does not need to be terminated.

If the tenant does not agree to a termination of the tenancy agreement, a landlord can only through a legal procedure ensure that the tenant must vacate the rented property and that the tenancy agreement is dissolved. In the event of an urgent interest, the eviction can be claimed in preliminary relief proceedings.