Commercial rent arrears: how do you intervene?

In the event of rent arrears for commercial premises, you intervene via a fixed procedure: first, send a written demand with a clear payment deadline; if payment is not received, then initiate proceedings before the sub-district court. There, you claim payment of the outstanding rent and, in the case of serious or persistent arrears, dissolution of the lease agreement plus eviction from the premises. Acting quickly and carefully limits your losses and strengthens your position as a landlord.

In short, you go through these steps:

• Report the first missed payment immediately and document everything in writing.
• Send a demand letter with the exact amount, a payment deadline, and a notification of interest, collection costs, and further steps.
• Engage a debt collection agency or lawyer if payment is not received.
• Initiate proceedings before the subdistrict court for payment and, in the event of serious arrears, dissolution and eviction.
• Also claim compensation for lost rental income until you have a new tenant.

What is rent arrears for commercial premises?

Rent arrears occur as soon as the tenant fails to pay the agreed rent (in full) on the agreed due date. In the case of commercial premises, this often involves substantial monthly amounts, causing the damage to mount quickly. As a landlord, you are not the first to face this: especially when a tenant faces financial difficulties, payment is easily delayed or fails to materialize altogether.

The most important thing is to act promptly. A friendly phone call sometimes works wonders, but don't leave it at that. The longer you wait, the larger the arrears become and the harder it gets to collect. Therefore, always record agreements and reminders in writing so that you can later prove that you clearly put the tenant in default.

Commercial space: what type of tenant do you have?

When leasing commercial premises, a legal distinction is made between different types of space. Broadly speaking, there are two categories: on the one hand, shops, hospitality establishments, and other spaces with a public function (often referred to as “retail business premises”), and on the other hand, offices, warehouses, and industrial halls (“other commercial premises”). Different protection rules apply to one type than to the other, and this can affect your position in the event of a dispute. Are you unsure under which category your property falls? Have this determined first, as it helps determine the sensible steps to take.

Step 1: Send a formal notice to the tenant

Always start with a written demand for payment. This is a formal reminder to pay in which you state the outstanding amount and provide a reasonable period for payment. Clearly state in the demand for payment:

• the exact outstanding amount and the period(s) involved;
• a specific payment term;
• that you claim statutory interest and collection costs if payment is not received;
• which follow-up steps you take so that the demand letter also serves as a means of pressure.

Send the demand letter in a way that allows you to prove dispatch and receipt, for example by email and registered mail. A well-substantiated file makes all the difference if the case later goes to court.

Collection costs for a business tenant

For consumers, a legally mandated formal notice with a fourteen-day period (the so-called “14-day letter”) applies before collection costs may be charged. For a business tenant (B2B), these strict rules do not apply in the same way: collection costs and interest may often be due as soon as the tenant is in default, especially if your lease agreement contains provisions regarding this. Exactly what applies depends on your contract and the circumstances. In case of doubt, have your commercial lease agreement reviewed so that you do not miss out on costs unnecessarily or, conversely, claim too much.

Step 2: starting the legal procedure

If payment remains outstanding despite the reminder, you have two options. You can engage a debt collection agency to collect the debt, or initiate legal proceedings yourself. For commercial tenancy disputes, the sub-district court the competent court. A judgment from the sub-district court provides you with a strong, enforceable title that allows you to enforce what the tenant owes through a bailiff. Unsure which route is the smartest in your situation? Our legal assistance you weigh the options.

Payment of the outstanding rent

The subdistrict court judge can order the tenant to pay the outstanding rent, plus interest and any collection costs. With this judgment, you hold an enforceable title. After service of the judgment, the bailiff can proceed with execution, for example by seizing the tenant's bank accounts or assets.

Dissolution and eviction of the property

If arrears accumulate significantly, you can additionally ask the subdistrict court judge to dissolve the lease agreement and order eviction. In practice, judges often use arrears of approximately three months as a guideline, but this is not a strict legal limit. In the case of commercial premises, the judge weighs all circumstances and assesses whether the breach, given the interests of both parties, is serious enough to justify dissolution. A shorter but structural period of non-payment (for example, systematically paying late) may also be sufficient to dissolve the lease agreement.

Sometimes the tenant manages to pay the rent at the last minute. Keep in mind that an eviction order may remain valid for some time after it has been issued, subject to conditions. As a result, in certain cases, you can still proceed with eviction later if the tenant defaults again, without having to immediately start new proceedings. The precise timeframe and conditions vary by situation, so be sure to seek proper advice on this matter.

Compensation for lost rental income

Finally, it is advisable to also claim compensation for lost rental income. After all, you miss out on rent between the moment of eviction and finding a new tenant. In practice, this means the previous tenant may not only have to pay the outstanding rent, but also the rent for the period until you could reasonably have found a new tenant. However, you do have a duty to mitigate your losses, for example by actively searching for a new tenant.

What are you NOT allowed to do as a landlord?

No matter how annoying a tenant who defaults on payments may be, you must not take the law into your own hands. Here are a few common mistakes that could actually make you liable for damages:

• Replace the locks yourself or secure the property. Eviction proceeds exclusively via a court order and a bailiff.
• Removing the tenant's belongings or blocking access. This is also vigilantism and is not permitted.
• Cutting off the supply of gas, water, or electricity to force payment. That, too, is a form of vigilantism.
• Simply offsetting a deposit or bank guarantee without carefully reviewing the agreements and conditions.

Are you unsure whether an action is permitted? Consult a lawyer before acting. A wrong step can unnecessarily weaken your strong position as a landlord.

How do you avoid rent arrears?

Prevention is cheaper than intervention. A few measures to strengthen your position as a landlord:

• Binding rental agreement: make clear agreements regarding payment dates, interest, and collection costs in case of late payment.
• Bank guarantee or security deposit: agree on security you can fall back on in the event of non-payment.
• Early detection: react immediately to the first missed payment instead of letting it accumulate.
• Documentation: always confirm payment agreements and reminders in writing.

What does MKB Juristen do for you?

At MKB Juristen, we take a preventative approach. When drafting new lease agreements, we strive for clarity, for example by establishing watertight agreements regarding payments and security. This prevents unnecessary disputes and strengthens your position. We can also review an existing lease agreement for you, draft a demand letter, or handle the entire debt collection process . Should it nevertheless result in legal proceedings, our jurists will assist you

Frequently asked questions about rent arrears for commercial premises

From how many months of rent arrears can I claim dissolution and eviction?

Often, an arrears of approximately three months is used as a guideline, but this is not a strict legal limit. In the case of commercial premises, the subdistrict court considers all circumstances. Even a shorter but structural period of non-payment may be sufficient grounds for dissolution.

Do I need to send a formal demand letter before going to court?

It is highly recommended. A written demand formally puts the tenant in default, provides proof, and gives him one last chance to pay. This is often also necessary to be able to claim interest and collection costs.

As a landlord, am I allowed to replace the locks myself in case of rent arrears?

No. Unilaterally evicting or locking up the premises is not permitted and can actually make you liable for damages. Eviction proceeds via a judgment from the subdistrict court and a bailiff.

Can I reclaim other costs in addition to the rent?

Yes. In addition to rent arrears, you can generally claim statutory interest, collection costs, and compensation for lost rental income. What is feasible depends on your lease agreement and the situation.

How long does a procedure at the subdistrict court take?

That varies by case and court. An undisputed claim can lead to a judgment relatively quickly, whereas a disputed case involving dissolution and eviction takes more time. A well-written demand letter and proper case file preparation beforehand help expedite the proceedings.

May I use the security deposit or bank guarantee for the arrears?

Often yes, but only within the limits of what you have agreed upon. Carefully review the terms of the lease agreement and the guarantee so that you invoke the security correctly and at the right time.

What can I do if my tenant is on the verge of going bankrupt?

In the event of (imminent) bankruptcy, your position changes: a trustee takes over management, and different rules may apply to collecting your claim and terminating the lease. It is therefore especially important to act quickly and have your lease agreement and collateral assessed so that you know which steps are still possible and worthwhile.

Immediate help with rent arrears?

Are you dealing with a tenant who isn't paying? Our legal experts will assist you with the formal demand for payment, the collection process, and, if necessary, proceedings before the subdistrict court. View our expertise in tenancy law or schedule an intake consultation directly. We will call you back to discuss the best next steps.