Prematurely terminate the rental contract: How to secure the deposit

Breaking a lease early can be a costly affair if you don't follow the legal rules carefully. Whether it's a new job, an unforeseen family expansion or the purchase of your own home; you want to make the transition to your new place without leaving your deposit with the previous landlord. Basically, a rental contract is a binding agreement, but Dutch law offers tenants the necessary flexibility to work out under a contract without financial scaring.

The key to keeping your deposit lies in a combination of correct written notice and flawless delivery of the home. If you comply with the contractual terms and leave the home as agreed, the landlord has no legal ground to withhold your money.

The notice period: Your first priority

The most common mistake that leads to the loss of (part of) the deposit is incorrect cancellation. If you do not comply with the notice period, the landlord may deduct the rent from your deposit for the remaining period.

Legal rules for tenants

In the Netherlands, the notice period for a tenant is equal to the payment period. Because almost everyone pays the rent per month, the notice period is almost always one calendar month.

• Cancelling as of the first: If you want to move out of the house by September 1, your cancellation must be received by the landlord no later than July 31.
• Temporary versus permanent contracts: With a temporary contract (for example, two years), since the new legislation, you can often terminate prematurely at any time, subject to the notice period, unless a minimum rental period has been agreed that legally stands.

Hint: Always cancel in writing by registered letter or email with acknowledgment of receipt. This is your proof that you stopped in time.

The condition of the home: Damage versus wear

The biggest stumbling block in getting the deposit back is the physical condition of the home. Landlords often use defects as a reason to deduct repair costs.

The recording report as a reference

At the end of the rent, the home is compared with the recording report that was made at the start. Did you paint the walls purple while they were white? Then you have to fix it. After five years of living, are the walls no longer “crystal clear” white due to normal use? This is called normal wear and tear and that's what the landlord can do nought contain.

Repairing it yourself is cheaper

If there is damage (e.g. a hole in the door or a broken washbasin), repair it yourself before the inspection takes place. If the landlord has to hire a professional company for these repairs, the costs are often many times higher than if you arrange it yourself.

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The inspection procedure: Pre- and final inspection

Always insist on a two-pronged inspection. This is the best way to protect your deposit against unexpected claims.

1. The preliminary inspection: This takes place approximately two to three weeks before your departure. The landlord will walk you through the house and specifically indicate what still needs to be done. This document is signed by both of them.
2. The recovery period: In the following weeks, you will complete the requested points. Because you know what the landlord expects, you minimize the chance of discussion during the final inspection.
3. The final inspection: On the day of the key handover, the landlord only checks whether the agreed points from the pre-inspection have been carried out. Will the property be approved? Then have the landlord immediately sign the final inspection report that says “agreed”.

Negotiating a permanent contract

Are you stuck with a contract with a minimum term (for example one year) and want to leave after six months? Then the deposit is often the collateral in the negotiations.

• Proposing a new tenant: The most effective way to leave without a penalty or deposit loss is to nominate a suitable new tenant who will take over the contract immediately. If the landlord has no vacancy as a result, there is often room to drop the minimum rental period.
• Redemption scheme: In some cases, you can agree on a fixed amount to terminate the contract. Make sure that this agreement explicitly states that the rest of the deposit is returned in full after delivery.

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What to do in case of wrongful withholding?

If the landlord does not refund the deposit within the legal period (fourteen days in case of no damage, thirty days in case of damage), you must take action.

• Specification requirements: The landlord cannot simply withhold a round amount. He must submit invoices or quotes about the repairs.
• Host statement: When leaving, indicate that you need a landlord statement for your new home. A landlord who fills it in positively will find it difficult later to claim that you were a defaulter or lived out the home.

Securely return your deposit: This is how you guarantee a full refund

Your deposit is not extra income for the landlord, but your own money that you have loaned. By strictly following the notice periods, repairing minor defects yourself and demanding a written agreement during the final inspection, you leave no room for unfair deductions. A proactive attitude during the last month of your rental period is the best guarantee of a full refund.