Lease Renewal: The Positive Consequences

We regularly receive a request: landlords and tenants asking if they can renew their lease. An understandable question given the current circumstances. Before making an immediate decision, let's consider some important aspects;

Renewing Temporary Leases

When we talk about renewing a lease, we are referring to those agreements that are entered into for a temporary period of up to 24 months. It is essential to remember that this type of temporary lease can only be renewed once for the same duration.

Moving to Indefinite Term
We often receive questions about the possibility of signing a new agreement with the current tenant after the contract expires. Unfortunately, this is not possible. If you choose to extend the contract period with the current tenant, the lease is automatically converted to an indefinite term lease.
The Rules After Renewal
The indefinite lease has different rules than the fixed-term lease. Below we list the most important rules for you

- The grounds for termination change. With a fixed-term lease, you could terminate the lease at the end of the period without a specific reason. In the case of an open-ended lease, specific valid reasons are required for termination, and this must be done through the court.

- The tenant still has 6 months to apply to the Rent Commission to find out if the initial rent is in accordance with the point value. It is therefore very important that you ensure that the property has been rented according to this point calculation. Not complying with this requirement can pose significant risks. 

If you have any questions about renewing your lease, contact Jeroen at Haring Verhuurmakelaar he will be happy to help! 

The Benefits of Renewal

While there are changes when switching to an indefinite lease, there are also benefits. If everything goes smoothly, the tenant will stay in your property for a longer period of time, saving you from mutation fees. In addition, you avoid vacancy, and you already know the tenant and what to expect from him or her.

In short, renewing a lease has both some changes in rules and potential benefits. It is important to consider the situation carefully and make the best decision for both you and the tenant.