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Hospitality and retail business owners (290 business premises) who lost revenue due to coronavirus measures may be entitled to a rent reduction. The Supreme Court ruled in late 2021 that the coronavirus crisis is an unforeseen circumstance and that, in principle, the disadvantage is shared equally between tenant and landlord.
What did the Supreme Court rule?
The Supreme Court answered preliminary questions regarding rent reduction due to the coronavirus. The essence: for lease agreements for 290-business premises concluded before March 15, 2020, the government measures and the resulting decline in turnover constitute an unforeseen circumstance (Article 6:258 of the Dutch Civil Code). The tenant is therefore entitled to a reduction in rent.
The disadvantage is shared
The basic principle is that the disadvantage caused by the coronavirus is shared equally between tenant and landlord, unless reasonableness dictates otherwise. The Supreme Court provided a calculation method for this (the so-called fixed costs method), in which factors such as the decline in turnover and any compensation (such as the TVL) are taken into account.
Who does this apply to?
The scheme primarily applies to tenants of 290-business premises, such as hospitality establishments and shops, who entered into a lease agreement before March 15, 2020, and who suffered a loss of revenue due to the measures. The situation is more nuanced for contracts concluded later and other situations.
What can you do?
If you are a tenant, you can use this ruling to substantiate a rent reduction and discuss it with your landlord, or through the courts if necessary. If you are a landlord, you know what to take into account. A proper calculation and substantiation are crucial.
Frequently Asked Questions
Am I entitled to a rent reduction due to corona?
As a tenant of 290 business premises with a contract prior to March 15, 2020, and a loss of turnover due to the measures, you may be entitled to a rent reduction based on the ruling of the Supreme Court.
How much discount do I get?
In principle, the disadvantage is distributed equally, calculated using the fixed costs method, which takes into account the decline in turnover and allowances. The outcome varies from case to case.
Does this also apply to offices or subsequent contracts?
The ruling primarily concerns 290 business premises with contracts prior to March 15, 2020. For other situations, the matter is more nuanced; seek advice.
Justify or assess rent reduction?
Our legal experts calculate and negotiate the rent reduction and review your lease agreement. View our tenancy lawteam or schedule a free consultation.
