Many rental agreements are consumer agreements, as was already ruled by the Court of Justice of the EU in 2013.
Yet many professional landlords and rental companies/organizations still seem to be oblivious to all types of consumer protection that also applies to the agreement.
But many tenants also seem to be obvious they often are a consumer.
The question thus becomes: when is a landlord a professional? The answer isn’t straightforward. The landlord does not need to have registered in the chamber of commerce for that.
I don’t see why we shouldn’t label ALL rental contracts as consumer contracts, since, regardless of whom I’m renting from, I’m still getting the same product…
But I guess that would have other implications here.
In South Africa, where I’m from, all rental contracts are covered by the rental housing act and consumer protection act. Regretfully, South Africa is lacking in the ability to enforce said laws, but they are there none the less, regardless of being private or otherwise.
I don’t see why we shouldn’t label ALL rental contracts as consumer contracts, since, regardless of whom I’m renting from, I’m still getting the same product…
I assume you mean rental agreements for housing. Not all rental contracts, because a company can rent a space as well.
If so, I agree that arguments can be given that all rental agreements for housing are consumer contracts and personally speaking I would favor that, but it’s not as simple as determining the product you receive. The question whether an agreement is a consumer agreement is also not limited to rental agreements and can be a difficult one to answer.
The definition centers around the role of the parties involved:
(A) consumer: any natural person who is acting for purposes which are outside his trade, business or profession
(B) professional: any natural or legal person who is acting for purposes relating to his trade, business or profession, whether publicly owned or privately owned
Both aspects need to be clear and if both apply accordingly, the agreement is a consumer agreement.
That sounds simple, but what if you rent a house in which you predominantly work behind a computer. You occasionally sleep and cook there as well, but your ‘actual’ home is located somewhere else. You only visit this 'pied-à-terre two days each week.
Are you a consumer in that case (see definition under A)?
Or let’s say you are a banker and want to buy a new briefcase for your work. You do use the briefcase for personal business as well and pay for the briefcase yourself.
Are you a professional in that case (see definition under B)?
Coming back to your original remark that all rental agreements for housing should be considered consumer agreements, I think the main reason why that is the case IMO, is that most private landlords simply rent out houses for long periods of time or keep renting out a house over and over again. It’s clearly not a hobby, but a job that is intended to provide income.
That said, should you ever end up in court and want to bring forward the agreement is a consumer agreement, it’s not necessarily true a judge will agree. Whether the landlord is registered in the chamber of commerce is not relevant, but if the landlord rents out multiple houses probably is. Repeatedly renting out a house might also be an argument as might be the amount of money involved. If the landlord pays an intermediary like a real estate agent might be relevant etc.
If however the landlord is registered in the chamber of commerce or you a renting from a rental company, it’s probably pretty clear the rental contract is a consumer agreement as most people live in a house for personal reasons.
Hmmm…
Interesting to see, especially regarding all the extra charges for late rent and such.
Might have wide impact beyond just increases.
Many rental agreements are consumer agreements, as was already ruled by the Court of Justice of the EU in 2013.
Yet many professional landlords and rental companies/organizations still seem to be oblivious to all types of consumer protection that also applies to the agreement.
But many tenants also seem to be obvious they often are a consumer.
The question thus becomes: when is a landlord a professional? The answer isn’t straightforward. The landlord does not need to have registered in the chamber of commerce for that.
I don’t see why we shouldn’t label ALL rental contracts as consumer contracts, since, regardless of whom I’m renting from, I’m still getting the same product…
But I guess that would have other implications here.
In South Africa, where I’m from, all rental contracts are covered by the rental housing act and consumer protection act. Regretfully, South Africa is lacking in the ability to enforce said laws, but they are there none the less, regardless of being private or otherwise.
I assume you mean rental agreements for housing. Not all rental contracts, because a company can rent a space as well.
If so, I agree that arguments can be given that all rental agreements for housing are consumer contracts and personally speaking I would favor that, but it’s not as simple as determining the product you receive. The question whether an agreement is a consumer agreement is also not limited to rental agreements and can be a difficult one to answer.
The definition centers around the role of the parties involved:
(A) consumer: any natural person who is acting for purposes which are outside his trade, business or profession
(B) professional: any natural or legal person who is acting for purposes relating to his trade, business or profession, whether publicly owned or privately owned
Both aspects need to be clear and if both apply accordingly, the agreement is a consumer agreement.
That sounds simple, but what if you rent a house in which you predominantly work behind a computer. You occasionally sleep and cook there as well, but your ‘actual’ home is located somewhere else. You only visit this 'pied-à-terre two days each week.
Are you a consumer in that case (see definition under A)?
Or let’s say you are a banker and want to buy a new briefcase for your work. You do use the briefcase for personal business as well and pay for the briefcase yourself.
Are you a professional in that case (see definition under B)?
Coming back to your original remark that all rental agreements for housing should be considered consumer agreements, I think the main reason why that is the case IMO, is that most private landlords simply rent out houses for long periods of time or keep renting out a house over and over again. It’s clearly not a hobby, but a job that is intended to provide income.
That said, should you ever end up in court and want to bring forward the agreement is a consumer agreement, it’s not necessarily true a judge will agree. Whether the landlord is registered in the chamber of commerce is not relevant, but if the landlord rents out multiple houses probably is. Repeatedly renting out a house might also be an argument as might be the amount of money involved. If the landlord pays an intermediary like a real estate agent might be relevant etc.
If however the landlord is registered in the chamber of commerce or you a renting from a rental company, it’s probably pretty clear the rental contract is a consumer agreement as most people live in a house for personal reasons.