New rental law leads to increased short-stay housing for expats in the Netherlands

A new Dutch rental law, introduced on July 1, 2024, has unintentionally led to a surge in short-stay housing contracts, favoring expats over local residents seeking affordable rental options, AD reports. According to a recent investigation, landlords are increasingly exploiting loopholes in the law to limit rental agreements to temporary stays, effectively sidelining Dutch renters.

The law, which reinstates permanent rental contracts as the default, was intended to provide renters with more stability. However, exceptions in the legislation, such as provisions for students and temporary workers, have created opportunities for landlords to prioritize short-stay arrangements. This trend is evident on Pararius, the country’s largest rental platform, where listings for expats under short-stay contracts have grown significantly.

One Rotterdam-based property manager, ProperBee Vastgoed, included disclaimers in advertisements stating that properties are only available to individuals temporarily residing in the Netherlands for work or study. “Otherwise, the properties would have to remain vacant,” a spokesperson said.

Short-stay housing, designed for stays of up to six months, is not subject to rental protection laws, including price caps. Critics argue this classification is being misused to bypass tenant protections. Gert Jan Bakker, a consultant at Stichting !WOON, which advocates for tenant rights, said, “Calling it short stay allows landlords to charge whatever they want. It’s a complete escape from housing regulations.”

In Nijmegen, similar practices are evident. The Canisiushof complex, offering 120 rental apartments, has reserved units for “exchange students, expats, and working professionals” under short-stay contracts. Locals are excluded from applying unless they meet the specified criteria.

Some housing advocates also question whether short-stay properties should be considered residential at all, as they are officially classified as “lodging.” Bakker warned that converting regular rentals into short-stay housing could amount to “housing withdrawal,” reducing the availability of homes for Dutch residents.

Landlords’ preference for expats has also grown, often to the detriment of local renters. Michel van der Steen, an expat real estate agent in The Hague, noted that many landlords explicitly request tenants from abroad. “They’re afraid Dutch tenants will stay too long, taking control away from the property owner,” he explained.

Van der Steen added that listings labeled “expats only” are becoming more common, effectively discouraging Dutch renters. “It’s a battlefield right now. This system is working against the local housing market,” he said.

An analysis of rental listings last year showed a 45 percent increase in properties classified as short-stay. This rise occurred even as the new rental law aimed to decrease the prevalence of temporary contracts. Bart Kappenburg, founder of a housing platform, called the trend a “Pavlovian response” to the legislation. “Landlords are using these loopholes to avoid offering permanent contracts,” he said.

Legal experts predict that the growing use of short-stay contracts will lead to increased enforcement and legal challenges. “There’s a gray area now, but municipalities are likely to start cracking down on these practices,” said attorney Annemarie Govers-Schotten, a specialist in rental law.

The Dutch Ministry of Housing has acknowledged the issue and stated that it is monitoring the situation. “If municipalities detect misuse of short-stay arrangements, they are responsible for enforcement,” a ministry spokesperson said. Minister Keijzer is expected to issue a report next month evaluating the impact of the new rental law.