A Common Type of Fixed-Term Lease
A 'yearly lease' or a 12-month contract is a very common type of fixed-term lease (contract voor bepaalde tijd) in the Dutch private rental market. It provides a clear, defined period for the tenancy. For the landlord, it offers the certainty of a tenant for one year. For the tenant, it can provide a clear timeline for their stay. However, a tenant must be acutely aware of the legal framework surrounding such a contract, particularly regarding early termination and what happens after the year is over.
The No-Early-Termination Rule
Unless an explicit break clause (opzegbeding) is included in the agreement, a one-year fixed-term lease is binding for the full 12 months. This means the tenant cannot give notice to leave after six months if their plans change; they are legally obligated to pay rent for the entire year. This is a significant risk and a major reason why tenants should carefully check their contracts for a break clause before signing. Without it, you are locked in.
What Happens After One Year?
The rules for what happens at the end of the year are very strict and designed to protect the tenant. The landlord has two choices: 1. End the Tenancy: The landlord can let the contract expire on the agreed end date. To do this, they must provide a written reminder between one and three months before the end date. 2. Continue the Tenancy: If the landlord offers the tenant a new contract, or simply allows the tenant to remain in the property and continue paying rent after the initial year is over, the law is unequivocal: the rental agreement automatically becomes a contract for an indefinite period (onbepaalde tijd). The landlord cannot legally chain together multiple fixed-term contracts. The second contract is always indefinite, with full tenant protection.