What is the diplomatic clause?

The Diplomatic Clause - Introduction

A diplomatic clause can be a useful solution if you need to temporarily rent out your home, also known as "between-rent."

So, what exactly is the diplomatic clause and how should you apply this tool for temporary rental? In this blog post, we explain everything you need to know.

Fixed-Term Contracts

According to Dutch law, specifically Article 271 Book 7, a fixed-term rental agreement for a duration of two years or less that is subsequently extended remains a fixed-term agreement. For example, a rental contract will automatically convert into an indefinite-term contract. In simple terms: In the Netherlands, you can only offer a tenant a rental contract for a maximum of twenty-four months. Therefore, you can offer a potential tenant a rental contract for 6, 9, 12, or 24 months. If a tenant stays in the property beyond this period, they automatically gain rights to an indefinite-term rental agreement without needing anything signed. In 99 out of 100 cases, this is not the intended outcome.

Is it possible to create a new diplomatic clause if the tenant is already using the property?

No, this is not possible! The diplomatic clause should have been included from the start in the first rental contract. Creative workarounds, such as placing the agreement in the partner's name or creating a rental pause, are not accepted by Dutch courts.

How can you get a tenant out of a rented property?

The diplomatic clause provides a solution if you wish to temporarily rent out your property. The diplomatic clause should be included in the rental agreement agreed upon with the tenant. This is known as 'between-rent.' The diplomatic clause must be included in the first rental contract. Failing to do so means it is too late. The diplomatic clause allows the rental agreement to be extended as needed without the tenant gaining rental rights. Such agreements ensure that neither the landlord nor the tenant can terminate the rental during the agreed-upon period. Only at the end of the current rental period can it be terminated. If the landlord is late in giving notice, they have a problem because the tenant then automatically gains a fixed-term rental agreement. This needs to be terminated on time, not earlier than three months but not later than one month before the end of the rental term.

Example of Temporary Rental with Diplomatic Clause

Suppose you must go to China for work for a year and you enter into a fixed-term rental agreement with a diplomatic clause for one year. The agreement starts on January 1st. Unexpectedly, the project takes six months less than expected, and you inform the tenant that they must vacate the property. This is not possible due to the diplomatic clause. If the tenant does not comply, you must wait until the twelve-month period is over. The notice must be given within the legal terms and by registered mail. To retake possession of your property, you must also demonstrate urgent need for self-use.

Legal Requirements for Terminating a Rental with a Diplomatic Clause

1. The landlord or previous occupant must return.
2. An agreement for eviction must be in place.
3. The agreement must be terminated within the legal terms.

Is it possible for the tenant to terminate the rental earlier with a diplomatic clause?

The tenant must also adhere to the agreed term and pay the full 12 months' rent.

What is included in a diplomatic clause?

The diplomatic clause specifies that the landlord will return to their home or apartment. This option has been available since July 1, 2016. If the diplomatic clause is included in the rental contract, the agreement can be extended as long as the agreed period has elapsed. Be sure to arrange each extension in writing (registered) at least a month before the current rental period ends.

How do you extend a rental period or rental contract with a diplomatic clause?

You can do this easily by drafting and adding an addendum to the rental agreement. This addendum must be signed by both the landlord and the tenant. Be sure to pay close attention to the legal deadlines.

Extending a Fixed-Term Rental Agreement with a Diplomatic Clause - Example

The parties have agreed in Article of the lease agreement that the lease agreement will terminate on due to the fact that the landlord then requires the respective property for personal use. The lease agreement stipulates that the tenant will vacate the property on this date and return it to the landlord. Given the current circumstances, it has become evident that the landlord's stay abroad may extend beyond the originally planned duration. For this reason, the parties have agreed that the lease agreement will now terminate on . The parties explicitly declare that on this date () the property will be vacated and delivered to the landlord by the tenant.

Date, name, and signature Date, name, and signature

Benefits of the Diplomatic Clause

The landlord benefits because a tenant with a fixed-term agreement cannot terminate the contract earlier. In a normal fixed-term contract without a diplomatic clause, this is a possibility.

As a landlord, you can always extend the contract with a new term of up to 24 months without the tenant gaining rental protection. However, you must ensure this is arranged before the current rental period ends.

Conclusion

The diplomatic clause can be a useful tool if you wish to temporarily rent out your property or apartment. However, caution is advised as there are legal deadlines within this legislation. If you do not fully understand these deadlines, there can be significant financial consequences. Therefore, we advise always seeking assistance from a rental agent with expertise. The Hague Real Estate Services is a specialist in temporarily renting out homes and luxury apartments. They are one of the largest real estate agents in The Hague, Wassenaar, and Voorburg.