In our article “Is a company renting a property also entitled to rent protection?“ you read about the risk you run if you rent to a company and the company’s employee still accrues rent protection through the actions of his employer/principal tenant.
The thing you as a landlord can do to avoid the possibility of this kind of problem is the following.
Option 1 – sublease agreements with the main tenant
We recommend that you always make contractual agreements with the company to whom you are renting your property about the duration and frequency of the sublease. Simply put: enforce to a company renting property from you:
-never enter into a lease for longer than 24 months with a subtenant
-never should a lease be extended
-ALWAYS any sublease agreement must first be submitted to you for approval
-ALWAYS any sublease agreement must be terminated in a timely manner (no later than 1 month and no earlier than 3 months before the end of the contract) by registered letter or bailiff’s writ by the main tenant to the subtenant.
-ALWAYS include a penalty clause in the contractual arrangements with the main tenant if it fails to meet the above obligations.
ALWAYS let with help from a specialist firm in the field of letting and rental law (such as VK Brokers ). Missing the smallest details when renting out your property can really cost you dearly.
Possibility 2 – make sure there is no rental involved
Another way to avoid rent protection from subtenants is to ensure that there is no “rent”. In order for there to be rent protection, there must be ‘rent’ and there is ‘rent’ in the Netherlands if the following 3 rules are met:
Rule 1: You give something use to another person
Rule 2: this use is for a certain period of time
Rule 3: the user provides you with a consideration for this use (money or a return service)
Example 1: if I can use the neighbor’s lawnmower for 1 day and we have agreed that in return I will pay him €25. Then there is rent. After all, the neighbor gives me something to use (lawn mower) for a certain period of time (1 day) and there is a consideration (€25).
Example 2: if I am allowed to use the neighbor’s lawnmower for 1 day and we have agreed that I fix his computer in return, then it is also rent. After all, the neighbor gives me something to use (lawn mower) for a certain period of time (1 day) and there is a quid pro quo (I have to fix his computer).
If a company rents a home for an employee and lets the employee live here for a certain amount of time, the top 2 rules are met. But if the employee of that company does not provide any form of consideration (money or a return service) and this is also legally so sealed, then it becomes difficult to speak of rent. Note that this also means there should not be any deduction/reduction of wages due to the use of the home.
So you could require the company renting your property to strictly exclude consideration through a special agreement between the company and its employee.
Rent out property properly and safely?
We specialize in legally watertight property rentals in North Holland and South Holland. Call or email Floris van Kuijeren at 06-47470404 / floris@vkmakelaars.nl.