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After 9 year rental contract?

Question

When our 9- year rental contract is over, we may wish to stay a little longer till we find the right house to buy.

-If we stay longer than 9 years, can the owner has the right to ask whatever he wants to charge in a new 9 year or 1 year or a 3-year contract or can he only raise according to the inflation?

Thanks for your answers.

Answer
RPPKN Jun 15, 2016 08:09

If neither you nor the owner gives notice to end the lease, it will be automatically extended by three years, under the same conditions. So the same rent, except the annual indexing. Legally, no other increase of rent is possible.

Answer
Drifter Jun 15, 2016 09:59

Thanks for your reply. If we would like to make another 9-year contract, what can happen? Does he have a right to give any price? Should we get in touch with him before hand? We still have time for the notice to end. Thanks a lot for comments.

Answer
Moi Jun 15, 2016 15:38

As RPPKN has indicated there is nothing you have to do. The lease now has been renewed. The only difference now is that you can give notice that you would like to end the lease at any time provided you give the appropriate notice which is usually three months. The original lease probably indicated that if you broke the lease within the first or second year you would have to pay a penalty. That has now ended so you can stay there as long as you like. The owner can only increase the rent according to the increase in the cost of living index.

Answer
Drifter Jun 16, 2016 11:26

Thanks again for the information. MOI, you mean, it becomes a 3-year contract with freedom to move out anytime. Normally, 3-year contracts are stricter. As it comes after a 9-year contract, it becomes not as strict. Is it what you say? Thanks again.

Answer
RPPKN Jun 16, 2016 15:13

Your contract does not become a three-year contract; it is _extended_ by three years, under the same conditions than the original 9-year lease. So you can leave at any time by giving a notice of three full calendar months. There will be no penalties to pay. In your situation there would be no sense in making a new nine-year contract with the same landlord. In fact, if he should suggest it, you should refuse. There are no advantages for you (and plenty to the landlord).

Answer
Drifter Jun 17, 2016 22:24

Thanks very much for both of you. It has been very informative.

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