Good tenancy practices under the microscope

On July 1, 2023, the Good Landlordship Act came into force. This law aims to prevent and penalize various forms of misconduct by landlords in the rental of residential property—ranging from discrimination and intimidation to the improper settlement of service costs and exceeding deadlines for returning security deposits.

In the lead-up to the law’s implementation, and even afterwards, posts frequently appeared on LinkedIn saying things like: “When will there be a Good Tenantship Act?” or “Doesn’t the tenant have to behave properly too?” Good news: good tenantship is already enshrined in the law, namely in Article 7:213 of the Dutch Civil Code (BW). It's high time we take a closer look at what good tenantship entails for tenants of residential properties.

The Tenancy Agreement

Apart from the legal obligation for a tenant to behave as a good tenant, the tenant is also bound by the tenancy agreement. These agreements, along with the general terms and conditions, often contain very specific provisions —such as a ban on making alterations to the rental property without permission, causing nuisance, or smoking inside the property. A tenant is, in principle, bound by such clauses, unless a clause is voidable, contrary to the principles of reasonableness and fairness, or conflicts with a fundamental right such as the right to privacy. For example, a general ban on pets may not hold unless there are solid grounds for such a restriction.

Good Tenantship Under the Law

The statutory notion of good tenantship in Article 7:213 BW is an open norm. A good tenant behaves reasonably and carefully, taking the situation into account. This means acting not only in self-interest but also with respect for the rights and interests of the landlord and others. In short, a good tenant does what is fair and appropriate under the circumstances. Below are some common scenarios:

Personal Use of the Property

The obligation to personally occupy the rental property as a main residence does not automatically follow from the legal standard of good tenantship. It is therefore important that these obligations are explicitly included in the rental contract or general terms. The standard ROZ (Dutch Real Estate Council) residential lease model includes such provisions.

Causing or Failing to Prevent Damage

A tenant must avoid causing damage to the property, the surrounding area, or the landlord. A tenant fails to meet the standard of good tenantship in cases of neglect, storage of flammable materials, possession of illegal fireworks, vandalizing lights in the property, or neglecting routine tenant maintenance.

Unlawful subletting or listing the property for rent without consent can also conflict with good tenantship, as can the use of the rental property for illegal sex work.

Criminal Offenses

Committing or preparing to commit a criminal offense from within the rental property can conflict with good tenantship—though not in all cases. For example, incorrectly filling out a tax return may not directly harm or endanger the landlord. But selling (hard) drugs or operating a drug lab from the property certainly would. Prostitution activities are also seen as inconsistent with good tenantship.

Causing Nuisance

Tenants must not cause unlawful nuisance to neighbors. Whether behavior qualifies as nuisance depends on the severity of the disturbance, the impropriety of the behavior, and whether there’s a justification. The nuisance must be objectively verifiable— subjective complaints from a neighbor are not sufficient.

What Happens when a Tenant violates Good Tenantship?

Just like landlords, tenants are legally obligated to behave properly. However, unlike with landlords, municipalities and the Rent Tribunal do not supervise tenant behavior, nor are there fines for tenants acting in breach of good tenantship. The burden of enforcement lies with the landlord.

If the tenant’s breach is serious enough to justify termination of the tenancy agreement—and there are no circumstances preventing such termination—the landlord can initiate legal proceedings to terminate the lease. If the situation is urgent, the landlord may also seek eviction through summary proceedings, provided it is sufficiently likely that the court will later rule in favor of termination.

Aside from termination, landlords may also claim a penalty if the lease includes such a clause—provided that the penalty clause is fair and enforceable.

Landlords who want more information can contact Claudia van Meurs-Janssens.