Subletting with a Diplomat clause: flexibility and security
When you are temporarily absent due to holidays, work or studies, it may be wise to temporarily rent out your property. This process, also known as subletting or the diplomatic clause, offers a practical solution. This arrangement is ideal for situations where you are going abroad for a certain period of time and want to be sure you can reoccupy your property when you return.
What is subletting?
Intermediate tenancy is a form of temporary rental where the landlord makes clear agreements with the tenant about the rental period and the termination of the contract upon the tenant's return. The main feature is that the tenant leaves the property again when the landlord returns from abroad.
Terms of an intermediate rental agreement
An intermediate tenancy agreement, also known as a Model C contract or diplomatic clause, has specific terms that both the landlord and the tenant must respect:
1. Duration of the Rental Period: You agree with your temporary tenant on a specific period for the rental. This period should not exceed 24 months. After this period, the tenant must leave the property unless an extension is mutually agreed upon in the interim.
2. Notice period: The landlord must give timely notice to terminate the rental agreement. The notice period is at least three months, and one month is added for every year the tenant lives in the property, with a maximum of six months.
3. Termination of Tenancy: Contrary to what some people think, the contract does not end automatically after the agreed period. The landlord must actively terminate the tenancy, giving proper notice and by registered letter or bailiff's writ.
4. Reason for Termination: The letter of termination must state that the landlord wants to move back into the property himself, referring to the relevant article in the lease.
5. No Early Termination: The tenant cannot terminate the contract early, nor can the landlord terminate the tenancy early.
Duration and Renewal of the Contract
Model C is a fixed-term contract. The tenancy may be extended if the landlord stays elsewhere for longer than originally planned, for example due to an extended employment contract. This extension must be mutually agreed between tenant and landlord, and agreed before the end date of the original contract. It is possible to repeat the extension several times, although there is still little case law on this.
Preparing for Extension or Termination
If you foresee that an extension of the lease is required, it is advisable to consult with the tenant well in advance of the notice period. In case the tenant does not want an extension, you can terminate the lease in a timely manner, observing the appropriate notice period.
Conclusion
The diplomatic clause or intermediate tenancy offers an excellent solution for landlords who are temporarily abroad. It provides a balance between flexibility for the landlord and security for the tenant. By making clear agreements and complying with the legal conditions, you can leave abroad temporarily with peace of mind, knowing that your property will be available again when you return.
