The shortstay contract: a solution for temporary rental housing or a legal minefield?

Since the entry into force of the Affordable Rent Act and the Fixed-Term Tenancy Act on July 1, 2024, tenancy agreements that are by their nature of short duration have once again come into the spotlight.

This so-called "short-stay contract" is often discussed in the media and political circles. Articles in newspapers such as AD and FD have led to parliamentary questions and attention from TV programs like Radar. This type of tenancy agreement is often presented as an easy trick for landlords to bypass tenant protection, but the reality is more nuanced. It's worth noting that “short-stay” is more of an administrative law term. The administrative aspects (such as zoning plans, permits, etc.) will not be covered in this blog.

What is a lease agreement of short duration by its nature?

The rules on rent (and rent price) protection do not apply to rental contracts that are, by their nature, of short duration. Traditionally, this type of tenancy agreement is intended for situations such as vacation homes, hotel and guesthouse stays, and temporary housing. However, using this type of agreement is not without risk for landlords.

Case law and criteria

The court assesses on a case-by-case basis whether a tenancy agreement is of short duration by nature. In doing so, it considers the nature of the use, the nature of the property, and what the parties intended regarding the duration of use. Although the length of the agreement is not decisive, it can serve as an indication. The longer the duration, the less likely it is to be considered of short duration by nature. If the court finds that the agreement is not of this type, it qualifies as a regular tenancy agreement, including tenant protection and rent price regulation.

Impact of the Rental Market Mobility Act and the Fixed-Term Tenancy Act

After the introduction of temporary rental agreements, the tenancy agreement of short duration by nature declined in popularity. However, the temporary agreement did not always provide a workable solution — especially not for labor migrants, for whom flexibility is often essential.

Since the introduction of the Fixed-Term Tenancy Act on July 1, 2024, indefinite rental contracts are once again the standard. Temporary rental of housing remains possible for a maximum of two years for specific groups, including students from other municipalities or from abroad. The Fixed-Term Tenancy Act has not altered the options that already existed for temporary rentals, including the tenancy agreement of short duration by nature.

Practical tips for landlords

The tenancy agreement of short duration by nature remains relevant for housing labor migrants and, in some cases, other groups such as international students. However, it is important that the actual and contractual circumstances truly fit this type of agreement. Courts will quickly see through attempts to circumvent tenant protection.

Tips for landlords:

1.  Clearly state in the rental contract that it concerns a tenancy agreement of short duration by nature. Explain the reasons and consequences of this classification to the tenant.

2.  Ensure the use of the dwelling is clearly temporary—such as for holiday rental, temporary work assignments, or study periods. Mention this explicitly in the contract.

3.  Offer additional services such as weekly cleaning, minor maintenance, and a fully furnished property including inventory.

4.  Ensure the actual situation matches the contractual arrangements.

5.  While duration is not decisive, a shorter period helps emphasize the temporary nature. Avoid long-term contracts that could undermine this.

6.  Clearly inform tenants about the absence of tenant protection and the temporary nature of the agreement. Make sure tenants understand the implications and that this is a specific exception to tenant protection.

7.  Collaborate with educational institutions or companies to provide temporary housing for students or employees.

8.  Always seek legal advice when using this type of tenancy agreement—not only for civil law implications, but also due to potential permit requirements.

Conclusion

The tenancy agreement of short duration by nature offers flexibility to landlords but is not without risk. With the new legislation, landlords may look for alternatives and sometimes misuse this type of agreement. Courts are likely to examine such agreements more critically. Landlords must be aware of the risks, but there are still situations where this form of tenancy is appropriate and useful. For those specific cases, this agreement remains a valuable tool.