All about different types of contracts

Publication: 18-10-2019

A lot of the time is renting out a place easier said than done. There could be some rules or requirements that you didn’t keep in mind when you first started looking to rent out your place. Especially expats need to make sure everything, other than signing a contract, is taken care of. This blog series will give you insights of everything you need to keep in mind when you’re renting out a place in Amsterdam. This week we will talk about different types of contracts.

Every situation is different and requires different actions and a different type of contract. Expat Housing uses four types of contracts. One gives tenants more rights and security and the other is very flexible. Our estate agents know which contract will be the most suitable for your situation. But here, you can read and orient yourself to see which one is the most suitable.

Contract type A

This contract is most appealing for (big) investors. Type A runs automatically for an undetermined time, even though it has a minimum time of one year. One positive thing of this contract is the security of an income for a minimum of one year. After this year, your tenant will build some ‘rentrights’, which means you can’t make them leave your property as easily. This type of contract is the most popular and very interesting for big investors and people who don’t need the house themselves.

Contract type B

With this type of contract there is an renting period of minimum 6 months and a maximum of 24 months. The landlord is allowed to cancel this contract once, naturally, with a cancellation period of 3 months. On the other hand, the tenant is allowed to cancel the contract every month. We don’t recommend this, because the tenant has to pay a fine when he cancels the contract earlier than agreed. This penalty clause was introduced in late 2016 to protect the landlords. If the landlord forgets to cancel the contract at the end of the 24 months, the contract will automatically change to an undetermined time, contract type A.

Contract type C

This contract is regularly put in some sort of ‘grey area’. This contract is mostly used by landlords who are moving themselves or who are traveling abroad for a certain period of time. Even here, there is a cancellation period of 3 months. This is one of our most flexible contracts, which is a big advantage for landlords. Although, the tenant has to be very flexible as well when you use this contract. This greatly reduces your target group, because most of the tenants don’t like to live in insecurity. They rather find something what gives them more stability.

Contract type D

Type D. The most unusual contract there is. This contract will only be used when the concerning property is up for sale. The insecurity with this contract is not very pleasant for either landlord and tenant. You don’t know when the house will be sold, so you don’t know when the tenant has to leave. The landlord and tenant can’t possibly handle the 3 month cancellation period. Properties in Amsterdam are sold so fast these days, that renting it out in the meantime is most of time not even possible anymore.

What’s in the contract?

There are a couple of things you need to keep into account before you sign the contract. You need all the relevant data of the tenant and the landlord. The deposit and renting price should be in there, either all-included or only the basic rent. Be very clear about this, to avoid any problems or misunderstanding.

Of course, the address and description of the exact rooms that will be rented out, should be in the contract. Think about the amount of rooms, and which ones the tenant can use, like a bathroom, living room, garden, etcetera. The check-in date and how long the tenant is allowed to stay are indispensable. Just as indispensable as how the payments will be done. Its also important to list house rules. Initials and signature of landlord and tenant on every single page validates the contract. Keep into account that different types of contracts requires different types of data and information.

I want more!

Do you still have any questions, ideas or do you need a little bit more information about this subject? Send an email to amsterdam@expathousing.com and we will reach out to you as soon as possible!