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Temporary living

In May 2023, the House of Representatives adopted an initiative bill from the PvdA and the CU in which temporary rent in the private rented sector is largely abolished. The Senate will probably discuss this proposal in the autumn of 2023. When this bill comes into force, we will include it in this chapter.

1. Temporary Rental after 2016

2. 7 types of Temporary Living

3. Summary Evaluation of Amsterdam Youth Contracts

   1. Temporality has become the norm for young people
      Temporality has become the norm in the private rental sector

 

Until 2016, the standard in the Netherlands and Amsterdam was that residential rental contracts were for an indefinite period. Since then, with new leases, temporariness has become the norm.

 

A temporary rental contract has become the norm for commercial landlords (all landlords except housing associations – jd) since the introduction of the Rental Market Transition Act 2015 (nu.nl/wonen van 17-07-2021).

 

Previously, the campus contract existed for students, but all other homes, both in social housing and in the 'free' and commercial rental, were rented out for an indefinite period. That has changed radically since July 1, 2016, when the law came into effect.

 

Official goal of the Tenants Transition Act: “to allow tenants to move on to suitable housing more quickly if their living situation changes.” But both now and then, it was known to everyone that in cities like Amsterdam it is virtually impossible to move on to a “suitable” home. The so-called goal was nothing more than a social sauce for one of the biggest “liberalisations” in the housing market: the lifting of rent protection in favor of a maximum rent for the landlord. Including a new dynamic in the housing market.

 

“In areas where there is a great housing shortage, private landlords make use of a temporary lease in 74% of the cases” (From: Evaluation report Wet Doorstroom Huurmarkt, to the 2nd Chamber 27-05-2021). In Amsterdam this percentage will be even higher.

It should be noted that, in contrast to private landlords, fixed rental contracts have remained the norm for institutional investors.

 

The shift to temporary rental is one of the main reasons why Amsterdam has remained accessible to newcomers.

The new construction of recent years in Amsterdam consists mainly of temporary rental homes (mainly by private individuals but also by housing associations; both social and 'free' rent). In addition, short stay homes are being built under the official hotel new-build category; these will also be available to newcomers. And since 1 July 2016, the existing housing stock has also been working mainly with temporary rental contracts, especially in the private sector. As a result, this accommodation can also be made available to newcomers.

At the expense of the temporary tenants who have to leave.

 

For private landlords, this offers the option of increasing the rent every two years. When the "market rent" fell in 2020-2021 due to the departure of well-earning foreigners as a result of the corona virus, we immediately saw vacancy in the most expensive category. The revenue model of the ever-rising rents no longer worked for a while.

 

 

It was first and foremost the proponents of the 'free market' effect in the housing market who wanted to replace rent protection with temporary rent. Their pursuit of profit and return on every scarce good, even if it concerns the most fundamental need of a person, took shape in this way.

 

End of Temporary Rental in the private rental sector?

On September 5, 2022, PvdA and CU submitted a private member's bill, with which they want to put an end to temporary rental contracts in the free rental sector. The parties cite the price-increasing effect of Temporary Rental as the main argument. They also cite the housing insecurity and associated stress among tenants as a reason. They want to submit the bill to the House of Representatives and Senate in the spring of 2023.

 

Temporary youth contracts

But the housing associations have also been lobbying for years to get rid of the fixed leases. The Amsterdam housing associations Stadgenoot and De Key saw it as the culmination of their efforts when the law was passed in 2015 that made temporary rental possible on a large scale (note 1). Their argument:

  • Due to temporary rental, people have to leave their homes after a number of years, making room for newcomers. Making room for newcomers is very social and solidarity: in this way you also give others a chance.

  • Due to the faster traffic flow, more homes will become available for young people. (see note 2 Evaluation RIGO)

  • After a number of years in a temporary home, you must have 'grown' so much, that you have made a career, that you are able to rent or buy a home on the free market. If you can't do that, you've lost your chances and you don't belong in the much sought-after city.

It goes without saying that the proponents of a 'free housing market' also use this kind of 'social' argument. However, the new law did not allow temporary letting by housing associations of ordinary social housing. De Key then decided to only build and manage homes for young people and to withdraw from 'normal' social rental. This decision is still being challenged to this day.

 

The housing insecurity has major consequences for both the peace of mind of those involved and for the commitment and involvement in the city. But whether this will increase or decrease due to the temporality is a question to be investigated, which we will tackle further in the 'social' section.

Because does the temporality cause people to connect much less with Amsterdam and to allow relations with the country of origin to dominate? So that Amsterdam will never become a 'home'. Or does the temporality force people to make the most of it?

 

It is certainly not 'socially' sustainable; the social contacts, the social network, the knowledge and experience are lost for the city upon departure. It weakens the social fabric of the city. And thus the basis not only for many social activities (from sports to religion, from culture to politics) but also for economic initiatives, for example.

 

In order to compensate for this to some extent, the registration period for a social rental home (with Woningnet) is maintained in the case of temporary rental. In addition, people who have lived in a district for 8 years, so especially youth from the district, have been awarded extra points for the allocation of social housing since 1-1-2022.

 

Note 1

During the retirement of Gerard Anderiesen as director of the housing corporation Stadgenoot on October 4, 2016, he was praised by both mayor van der Laan and the other corporation directors for his efforts to make temporary letting possible. At the same time, the speakers wondered why there was so little social support for the housing associations and the PvdA.

 

Note 2

See Evaluation of Youth Contracts Amsterdam by RIGO 2022; summary below.

.

I am not aware of any information about the residential location of those leaving the temporary rental in the private sector. So whether they move within Amsterdam or leave the city. Because a next 'free', temporary, private rental home is often the only alternative in Amsterdam, I assume that most leave the city after 1 or 2 temporary rental contracts. Should be further investigated.

 

 

2. 7 types of Temporary Living.

 

    1. RENTAL CONTRACT FOR A LIMITED TIME
  2. YOUTH CONTRACT
  3. CAMPUS CONTRACT
  4. TEMPORARY RENTAL ON THE BASIS OF THE VACANCY LAW
  5. LOAN AGREEMENT
  6. IN BETWEEN RENT
  7. SHORT STAY

 


Ad 1. RENTAL CONTRACT FOR A PARTICULAR TIME

Since 1 July 2016, all rental properties may be temporarily rented out.
Self-contained homes for a maximum term of 2 years.
Detached houses (rooms) for a maximum of 5 years.
In the summer of 2021, at the initiative of the VVD, the House of Representatives wanted to extend the term for independent homes to 3 years, but that was blocked by the First Chamber.
At the end of the term, the contract may not be extended for another temporary term. Extension leads to a contract for an indefinite period.

With a few exceptions, housing associations are not allowed to conclude a fixed-term rental contract for social housing. However, they are allowed to rent out temporarily to specific groups (students, young people, “workers who have work temporarily in another place”, etc.) and they are allowed to work with all other types of temporary rental contracts.
On September 5, 2022, PvdA and CU submitted a private member's bill to end temporary rental in the private sector. They expect to submit this bill to parliament in the spring of 2022


Ad 2. YOUTH CONTRACT

With the new law, a special youth contract was introduced on 1 July 2016. Intended for young people aged 18 to 27.
(Particularly for social rental housing from housing associations; also applicable to social rental housing for private individuals? Further investigation)
For a maximum term of 5 years, with a possible extension of 2 years.
Theoretically, you can start renting on the basis of a youth contract at 27 and then for another 5 years, so you can stay in this house until you are 33.
The build-up of your registration period for permanent social housing remains.
Applies to both self-contained and non-self-contained accommodation.
Rent allowance is possible for independent living space.
The maximum rent is regulated by the rental point system (home valuation system).
This type of contract is interchangeable with a rental contract for students and PhD students (see there).


Ad 3. CAMPUS CONTRACT

The old campus contract is still in effect. For university and higher professional education students, the colleges.
The number on your student card serves as your admission ticket.
You can continue to live up to six months after you have finished your studies.
Since 1 July 2016, PhD students can also make use of a campus contract.
Applies to both self-contained and non-self-contained accommodation.
Rent allowance is possible for independent living space.
The maximum rent is regulated by the rental point system (home valuation system).
This type of contract is interchangeable with a rental contract for young people (see there).


Ad 4. ​​TEMPORARY RENTAL ON THE BASIS OF THE VACANCY LAW

For temporary letting under the Vacancy Act, the lessor needs a permit from the municipality.
This temporary rental is for a maximum of 2 years pending demolition or renovation; extendable to a maximum of 7 years.
In the case of temporary rental pending sale, the maximum term is 5 years; maximum of 10 years in the event of a temporary deviation from the zoning plan (for example, living in a school).

In principle, there is rent protection. This means that the rental point system is in effect. The rent is stated in the permit from the municipality.
The rental price protection does not apply only in the case of temporary letting by private individuals pending sale.

By reporting empty homes to the municipality on the basis of the Vacancy Act (to be included in the 'vacancy register'), the vacancy is officially protected against squatting.
After a Blackstone home was squatted on June 4, 2021 in De Pijp (and immediately evicted by the police), Blackstone registered all of its 330 vacant homes with the municipality for the 'vacancy register' (AT5 28-08-21). According to Blackstone, the homes were empty pending maintenance (NH Nieuws 30-08-21).
Blackstone does not intend to rent out the homes temporarily under the Vacancy Act, because most homes were still empty at the beginning of 2022.
After renovation, they will be rented out for the maximum 'market rent'.

 

 Ad 5. LOAN AGREEMENT (also: anti-squat, vacancy management)

This does not involve renting and letting, so also not temporary letting.
The space is used "free of charge".
So there is a temporary residence.

There are about 30 anti-squat agencies/vacancy managers in the Netherlands; most are also active in Amsterdam: Zwerfkei, VPS, Alvast, Adhoc, Villex, HOD, Bewacht & Bewoond, Gapph.
The non-profit/social vacancy manager LOLA (Leegstands Oplossers Amsterdam) mainly lends workspace and cultural spaces.

This concerns large numbers of vacant offices, schools, homes, companies, halls, etc. By deploying one or a few 'squatters', users, borrowers, the building is protected against squatting. Most anti-squat agencies leave the building largely empty, some allow it to be used more intensively.

The user only pays for gas, water and electricity plus a small management fee. As soon as you pay more, there is rent and you therefore have rights.
The user has virtually no rights; usually a notice period of 3 weeks applies.

Some vacancy managers / anti-squat agencies try to place their 'users' who have to leave their space in the next building as much as possible. Especially the large vacancy managers / anti-squat agencies are capable of this.


Ad 6. IN BETWEEN RENT

An owner or tenant who temporarily does not use the house may rent it out temporarily.
The term and rental amount must be stated in the agreement.
In Amsterdam, a caretaker arrangement applies to social housing where the tenant has been away for more than 3 months. The agreement for this states the period (maximum 2 years), compensation and the permission of the landlord and the municipality.
(see also the site Municipality of Amsterdam).
The rental point system does not apply (the rent must be 'reasonable and fair') and rent allowance is not possible.


Ad 7. SHORT STAY

From the municipal site Amsterdam.nl on 21-02-2022:
Short stay is temporary living in an independent home for a period of at least 7 nights and a maximum of 6 months.
The Amsterdam short stay policy is aimed at offering sufficient housing to (mainly foreign) employees. This keeps Amsterdam attractive as a business location for companies.
Short stay is intended for temporary stay of expats and internationals who come to Amsterdam temporarily for work. Short stay is expressly not intended for the accommodation of tourists.

Tourist tax must be paid for overnight stays in a short-stay apartment.

Short stay can only be carried out in existing housing construction if a temporary housing withdrawal has been issued for this purpose on the basis of the Housing Act. Since 14 January 2014, no new permits for short stay in existing housing have been issued.

So much for the site of the municipality of Amsterdam.

Short stay is therefore no longer possible in the existing housing stock. Permission is still being given in the new building, despite the fact that there is an official hotel stop, as recently emerged at the Bajeskwartier.

In short stay tenancy contracts, tenancy protection is usually excluded, which does not mean that the tenant has no tenancy rights. Short stay studios/apartments/units are rented out furnished, with a package service that goes further than with ordinary housing rental and there is no question of rent protection.

Usually there is a (legal) basis for a rental contract that 'by its nature is of short duration'. The same (legal) construction that allows temporary living in holiday homes and garden houses. There is therefore no question of rent (price) protection.

From the site of the Woonbond on 21-02-2022: Short stay is used, for example, to rent out a modern and fully furnished living space to (foreign) students for an average period of six months to one year. This can be in connection with a short-term study or research programme, an exchange of students and the like, whereby these students are usually immediately followed by the next generation in the same accommodation. The so-called 'student hotels' often base the rental of rooms on a short stay.

 

In Amsterdam among other things

Student Hotel with branches on:

Wibautstraat 129 with                                        571 rooms

Jan van Galenstraat 335 with                            487 rooms

 

Student Experience with branches (since 2020) on:

NDSM with                                                         403 rooms (average 24 m2)

Amstelkwartier (Johan Muyskensweg) with       520 rooms (average 21 m2)

Zuidas (formerly Ravel) with                              800 studio’s (average 21 m2)

Houthavens (Minervahaven) with                       600 units

 

Hotel Jansen with branches on:

Valschermkade (Schinkelhaven):                      143 short stay rooms

(999 euro/month all-in) and 23 hotelrooms

Bajeskwartier (planned to realise end of 2022): 200 short stay rooms/ student rooms

 

In total almost 4000 rooms, almost all of them recent. With a relatively short stay and therefore of great importance for the accessibility of Amsterdam for newcomers.

 

 

    3. Summary
Evaluation Youth Contracts Amsterdam Research into the functioning and experience.

by the RIGO, dd. March 30, 2022
commissioned by the Municipality of Amsterdam, the Amsterdam Federation of Housing Corporations (AFHC) and the Federation of Amsterdam Tenants' Domes (FAT)

  • The flow has not yet started.
    While the youth contracts are in principle valid for 5 years and the scheme came into effect 5 years ago, more than two in three (68%) young people still live at the same address.

     

  • Extend by 2 years?
    The law offers the option of granting an additional 2 years after 5 years. Some corporations do that too.

     

  • Contrary to the premise of the introduction of youth contracts, most young people do not (as yet) experience rapid income growth

     

  • Offer for young people has not increased
    The share of homes that housing associations rent out to young people has not increased as a result of the introduction of youth contracts.

     

  • It is mainly 'older young people' (23-27 years) who move into a home with a youth contract. This is mainly due to allocation on the basis of registration time and on the basis of direct mediation, in which skills play a role.

     

  • Half of the residents with a youth contract (on 1-1-2021) were an 'original' Amsterdammer, i.e. already lived in Amsterdam 10 years ago)
    This makes the youth contracts of relatively great importance for 'original' Amsterdam young people, because the majority (61%) of the Amsterdam young people (18-27 years old) are newcomers, i.e. have lived in the city for less than 10 years.

     

  • In 2020, 27% of new lettings were by housing associations with a youth contract (2000 of the 7600 independent social rental homes).
    (My comment: Contrary to the existing picture, corporations do indeed rent out a large part of their vacant homes to young people. But young people who have recently come to Amsterdam do not end up here very much; they mainly come to private rental homes and student homes.)

 

 

  • Potentially more offer for young people
    When the flow of young people increases than before the introduction of the youth contracts, the offer for young people increases. Before introduction, young people moved on after 7.6 years, now that could drop to an average of 4 years. This would more or less double the supply.
    This is not an issue for the time being, because the term of the majority of youth contracts has not yet expired; will be addressed for the first time in 2022.
    (My comment: If the term of the youth contracts is extended to 7 years, the average length of residence will be longer and the supply will therefore decrease.)
     

  • Where to after departure?
    Of those who left a home with a youth contract, 67% stayed in Amsterdam; 33% have therefore left the city.
    14% of the departures went back to live with their parents.
    8% of the departures went to live abroad.


    Alderman Dantzig: “give young people an extra 2 years”
    During the discussion of the RIGO report in the council committee on August 31, 2022, Alderman Dantzig appealed to the housing associations to give young people who are unable to find another home after 5 years (the majority according to the report) an extra 2 years as standard. to give.





    BUYING SECTOR AS A "HOME" FOR NEWCOMERS

    Comes in separate chapter

 

 

 


     Amsterdam, February 22, 2022; Update June 14, 2023

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