Rental prices are constantly on the rise in the Netherlands. In cities like Rotterdam, the average cost of living can be around €1,758 per month, with a significant portion going towards rent (around €1,000 on average). If you’re only earning enough to make ends meet, keeping a roof over your head can be challenging.
This is why many people are turning to joint tenancies to make housing more affordable. Community living is also getting more popular, allowing people to share spaces and split rent costs. This not only makes housing more financially accessible, but it also fosters a sense of community and shared living.
But there’s more to it than just finding roommates though. You have to understand the legalities involved. What happens when you enter a shared living situation? What happens when someone comes and goes?
There are two main ways to become a joint tenant in the Netherlands: entering a new tenancy agreement from the start, or joining an existing tenancy agreement that’s already in place. Let’s explore the key differences between these two approaches.
Getting Started: What is a Tenancy Agreement?
The tenancy agreement is the contract between a landlord and a tenant. It is a legal document that outlines the rights of both parties involved, from rent price and duration to termination procedures.
One of the most common types of tenancy agreements is called group tenancy agreements. Take a closer look at them below:
Group Tenancy Agreement
When you rent an apartment with a group, you all enter into a joint tenancy agreement. This means the entire group is collectively responsible for the entire apartment, including all bedrooms and common areas. Apartments rented as joint tenancies are typically referred to as ‘Friends’ apartments, as they are designed for shared living arrangements. The Citylifer specialises in designing and building Friends apartments.
A group tenancy agreement holds everyone jointly and severally liable. This means:
- Unified Rent Payments: For Friends apartments, the tenants should pay rent for the entire apartment. They can divide the rent prices among themselves.
- Responsibility: Everyone in the group is equally legally responsible for any damage caused to the property, regardless of who caused it.
- Terms of the Rental Agreement: All tenants are individually bound by the terms and conditions outlined in the agreement.
- Termination: The tenancy agreement can only be terminated with the entire group. If one single tenant wants to leave the apartment, a contract change needs to be requested.
While these are all potential downsides of joint tenancies, there is a significant benefit to consider: tenants get to choose who they live with, fostering a safe and trusting living environment.
What is a Contract Change?
Sometimes, things change after you’ve signed a tenancy agreement. To reflect these changes, you and your landlord might need to make adjustments to the original agreement. This process is called a contract change.
Importantly, any contract change must be approved by both parties. This means that both the landlord and the tenant’s consent are required, along with any guarantors named in the tenancy agreement, before the changes can take effect.
That way, everyone involved is on the same page and avoids any confusion down the line.
When Does a Contract Change Happen?
Here are some situations when a contract change might be necessary:
A Tenant Leaves
A roommate is moving out, but other roommates want to stay and need to replace the leaving tenant in the agreement.
A New Tenant Arrives
A new tenant is joining an existing tenancy with a group of people who already have an agreement in place. They may be unable to find or prefer not to find an empty apartment and want to join an existing tenancy.
But why should anyone choose to join an existing tenancy? The thing is, when you take over a contract through a change, the rent and terms are those set in the original agreement.
Why is this great for you? The market changes, often leading to higher rents over time. With a contract change, you’re more likely to enjoy the benefit of the original, possibly lower rent. This can be a significant advantage compared to starting a new tenancy with current market rates.
Important Note: Do keep in mind that a contract change involving a tenant leaving does not allow subletting! If someone leaves, they have no claim to the property anymore. Please also be aware that typically a fee is charged for processing contract changes. Discuss this with your landlord and ensure any fees are clearly outlined in the contract change document.
Changes in Rent and End Date
A contract change might also happen if the rent price changes to reflect the new rate. Moreover, if the agreed-upon end date of the contract needs to be extended or shortened, this would typically be considered a contract change.
How Does a Contract Change Relate to the Tenancy Agreement?
Think of it like adding a note to the original agreement. While the core terms and conditions of the original tenancy agreement remain the same, the note explains the specific change, like the name of the new tenant and/or guarantor.
This keeps things clear for everyone, protecting both the landlord and tenants involved.
New Tenancy Agreement vs. Contract Change: What Are Their Key Differences?
Now that you’ve learned about tenancy agreements and contract changes, let’s discuss their key differences.
Contract Terms
One of the biggest key differences between a new tenancy and a contract change lies in their terms.
- New Tenancy Agreement: When you begin a new agreement, you’ll sign a fresh agreement outlining the key terms of your occupancy. This may include:
- Notice period
- Rent
- Responsibilities
- Termination clauses
- Tenant wishes (like pet policies or desired amenities)
- And more!
- Contract Change: A contract change mainly happens when specific aspects of the tenancy agreement might need adjustment, like adding a new roommate or updating rent prices.
Check-In Procedures
The specifics of check-in procedures also differ for contract changes and tenancy agreements. When you understand how they differ in procedures, it can ease the transition and ensure a smooth experience.
- New Tenancy Agreement: You’ll go through a complete application and move-in process, including a formal check-in with the landlord or agency agent. This includes:
- Contract Change: No formal check-in occurs typically, but The Citylifer recommends conducting your own thorough inspection to avoid discrepancies with the leaving tenant.
Check-Out Procedures and Settlements
When you’re ready to leave or let someone else take over, how things go depends on whether you’re ending the contract completely or just making changes to it.
- Terminated Contract: The landlord guides you through the process; this includes pre-inspection, final inspection, meter readings, utility bill settlements and settlement deposit.
- Contract Change: With a contract change, there will be no structured check-out process. The leaving and new tenants will manage the transition directly. Meaning, the landlord is not involved in conducting inspections or handling settlements. You’ll need to record meter readings, discuss utility cost division and document the apartment condition to ensure a smooth handover.
Administrative Costs
For administrative costs, here’s what you should know:
- New Tenancy Agreement: Landlords cannot charge any fees for signing a new tenancy agreement.
- Contract Change: Since contract changes are requested by tenants, the landlord may charge a reasonable administrative fee to cover processing costs. It’s always best to confirm these fees with your landlord before requesting a change.
Checklist for a Contract Change
While the landlord typically doesn’t handle formal check-ins for contract changes, we encourage new tenants with a contract change to take charge of their move-in experience by conducting their own thorough inspection. This simple step can prevent future misunderstandings between you and the previous tenant regarding the apartment’s condition.
We’ve made the process easy with our checklist. This guide outlines key areas to inspect, ensuring a smooth transition into your new space.
Here’s a quick guide to what both leaving and arriving tenants should expect during inspections, helping you feel prepared and confident.
Check-Out For Leaving Tenants
Here are the things that the leaving tenants should do:
- Provide your personal information. Fill in the details such as apartment address, date of inspection, new resident and your information as the leaving resident.
- Take meter readings. This includes the electricity meter, water meter and gas meter.
- Clean all areas of the apartment, such as the kitchen, bathroom, bedrooms and living room.
- Return all keys to the front door, back door, mailbox and any other storage areas.
- Complete the inventory list. This list should include all of the items that are included in the apartment, such as furniture, appliances and dishes.
- Sign the document to confirm your understanding and agreement to the outlined terms, along with the new resident. Kindly note that you also have to pay the contract change fee for completion.
Check-In For New Tenant
As the new tenant, you should follow these steps when checking in:
- Provide your personal information. Fill in the details such as apartment address, date of inspection, leaving resident and your information as the new resident.
- Take meter readings. Record the readings for electricity meters I and II, water and gas meters. For apartments with block heating systems, record the meter readings for each radiator.
- Take the keys. Receive and document the keys from the leaving resident for all areas, such as front door building, front door apartment locks, mailbox, storage/shed, gate/parking spot, etc.
- Conduct a thorough inspection of the apartment’s cleanliness using the provided cleaning checklist. Ensure that the apartment is in the best possible condition, and document its cleanliness with detailed pictures or videos.
- Take responsibility for the inventory, comparing it with the original list drafted during the check-in. Verify the condition of each item in different areas of the apartment.
- Thoroughly compare the current condition of the apartment with the original check-in form. Make sure that you document any defects or items that need replacement, and ensure that the leaving resident commits to repairing or replacing them before the contract change.
- Arrange for home insurance in the Netherlands covering the apartment’s inventory, including your furniture and any rented furniture, before the contract change’s start date. This is usually done with the group. Address deposit handling, and be prepared to pay the specified amount to the leaving resident for deposit settlement.
- Sign the document to confirm your understanding and agreement to the outlined terms, along with the leaving resident. Kindly note that you also have to pay the contract change fee for completion.
Conclusion
Understanding the difference between a new tenancy and a contract change may feel complicated, especially if you’re a new tenant. It might make renting even harder than it already is, potentially adding unnecessary stress to the whole process.
However, their differences are not hard to grasp. Think of tenancy agreements as a complete guidebook for the rental process—they give you the initial terms and conditions for renting a property. They outline the rights and responsibilities of tenants and the landlord. It typically covers aspects like rent, house rules, dates of tenancy and the personal details of all parties involved.
Meanwhile, a contract change only focuses on the transition between tenants, not making entirely new terms like a tenancy agreement. It covers the transfer of responsibilities and check-in forms to ensure everything is in place before a tenant leaves or arrives.
Renting in the Netherlands doesn’t have to be difficult. If you ever have questions, don’t hesitate to reach out to The Citylifer team. We’re always happy to provide clarity and ensure a smooth and transparent process for you!
The Citylifer Perspective
The Citylifer has created exceptional, innovative spaces in the best locations. These dynamic partnerships have given us the chance to reshape living spaces through community living: fulfilling, inclusive, sustainable.
Fostering Safe and Intimate Communities
At The Citylifer, community comes above all else. To foster connections while maintaining a sense of familiarity, we allow residents to choose their own roommates. All units share communal spaces designed for cooking, dining, watching movies and more. This arrangement creates a setting where friendships flourish, enhancing residents’ sense of safety and overall satisfaction with their living conditions.
Fair Pricing, Transparent Process
The costs for contract changes are kept at a minimum at The Citylifer, while the process is made transparent. All residents are informed about the different steps and our team will help wherever necessary to ensure a smooth change.
FAQ
A new tenancy agreement is a completely new contract with all the terms and conditions laid out, including rent amount, specific rules or clauses and responsibilities of both parties involved.
On the other hand, a contract change happens when you and your landlord want to tweak some things in the existing agreement without starting all over again, such as adding a new tenant.
A contract change might be necessary when a tenant leaves, and their replacement needs to be included in the agreement, or when a new tenant wants to join an existing tenancy.
At The Citylifer, here are the things you should remember when it comes to contract changes:
- Contract changes don’t allow subletting.
- A fee is charged for processing contract changes.
- Both departing and new tenants are responsible for recording meter readings, discussing utility costs and documenting the apartment’s condition.
