29 May 2024

Rent price review of business premises

By Wouter de Veer

One of the most important parts of a lease is the rent price. Over time, the rent price may no longer be in line with market rates.

If this is the case and if the lease is for a ‘290 business premise’ both the lessor and the lessee can apply to the court to have the rent price redetermined. In this blog article you can read about how a rent price review of business premises takes place.

290 business premises

First, the lease must be for ‘290 business premises’. This is the case if the premises are leased for the operation of a retail business, a restaurant or café, a delivery or takeaway service, a hotel, camping site or a craft business. If this applies, both the lessor and the lessee can claim a rent price review. This is not possible if there is a different rent price regime, for example when renting office space or residential accommodation.

When is it possible to claim a rent price review of a business premises?

Article 7:303 of the Dutch Civil Code (Burgerlijk Wetboek) provides that either party can bring an action in court to review the rent price:

  1. if the tenancy agreement is entered into for a fixed term: after the agreed lease term has expired; or
  2. in all other events: each time when at least five years have expired since the day on which the last rent price, as set by parties or the court, has become effective.

By way of illustration, if there is a 15-year lease, which is renewed by periods of five years each time, it is only at the end of the first 15-year term that a claim can be made to have the rent price reviewed. The rent price can, of course, be indexed in the meantime.

It is also important that the rent price is no longer in line with the rent price of similar business premises in the area.

Expert’s report

It is only possible to file a claim for a rent price review if an expert’s report is also submitted. The expert’s report lists the rent prices of comparable business premises in the area and the average rent price over the previous five years. Relevant factors include location, size, layout, condition, accessibility and amenities.

The expert or experts should be appointed jointly by the lessee and the lessor. If the parties cannot agree between themselves, the lessee or the lessor can ask the court to appoint an expert.

From which date will the new rent price apply?

In general, the rent applies from the date the lessee or the lessor filed the claim with the court. This differs if a request is first made to the court to appoint an expert. If necessary, the rent will generally apply from the day the request for appointment of the expert is filed. This means that if the rent price is increased, the lessee will have to pay hefty rent arrears to the lessor retrospectively. However, the court may also order that the rent price be adjusted gradually over a period of up to five years.

In conclusion

If you believe that your rent price is no longer in line with the rent price of similar premises in the area, you are free to file a rent price review claim. To avoid surprises, it is important to follow the right steps.

More information

Do you have questions regarding this subject? Do not hesitate to contact me or one of the other specialists at GMW advocaten to discuss your options.

Wouter de Veer

Wouter de Veer

Lawyer

Wouter works as a lawyer in real estate & tenancy law.

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