Rent adjustments

Rent adjustments

There are three categories of lease agreements. Different rules regarding rent adjustments apply to each category. Firstly, the lease concerns residential premises (Article 7:232 of the Dutch Civil Code), secondly, commercial premises for small and medium-sized enterprises (Article 7:290 of the Dutch Civil Code), and finally, other built immovable property (Article 7:230a of the Dutch Civil Code). Regarding the latter, consider office space, for example.

With regard to residential accommodation, the percentage by which the rent of the accommodation may be increased is determined annually. A distinction is made between homes rented out in the free market sector and social housing. In the case of the rental of commercial premises for small and medium-sized enterprises, the rent may only be adjusted after the expiration of the fixed term of the lease agreement. In many cases, this is after five years. There are no specific statutory regulations regarding the rental of other built real estate. Parties are therefore free to make agreements in the lease agreement regarding the adjustment of the lease. Freedom of contract is paramount in this regard. It is advisable to seek expert legal advice when agreements are made regarding rent adjustments or when conflicts arise from a rent adjustment.

We have the knowledge and expertise to assume diverse roles: from advice to dispute resolution. We have an experienced team of lawyers and legal experts in the field of tenancy law. Contact us to discuss the possibilities.

Rent revision for commercial premises (Article 7:303 of the Dutch Civil Code)

In the case of commercial premises for small and medium-sized enterprises within the meaning of Article 7:290 of the Dutch Civil Code – such as a shop, hospitality establishment, or craft business – the rent may, over time, become out of step with the market. Both the tenant and the landlord may then request the court to determine the rent on the basis of Article 7:303 of the Dutch Civil Code. This can be done after the expiry of an agreed fixed term, and in other cases whenever at least five years have elapsed since the last rent determined by the parties or the court. In doing so, the court considers the average of the rents for comparable commercial premises in the area over the preceding five years. The selection of reference properties is often the most fiercely contested part of such proceedings – strong substantiation makes the difference between an adjustment of a few percent or many tens of thousands of euros per year. Whether you are an international real estate fund or the baker on the corner seeing his rent rise: our lawyers and in-house counsel will assess for you whether a rent revision procedure has a chance of success.

Mandatory expert opinion (Article 7:304 of the Dutch Civil Code)

A claim for a further determination of the rent is admissible only pursuant to Article 7:304 of the Dutch Civil Code if it is accompanied by an opinion on the further rent, drawn up by one or more experts jointly appointed by the parties. If the parties fail to reach an agreement on the person of the expert, the most diligent party may ask the court to appoint one. The moment of this request is of great legal importance: the date of the request serves as the reference date for the retroactive effect of the new rent. Anyone wishing to index or revise rents would therefore be wise not to wait too long. We guide the entire process: from the selection and instruction of the expert to the negotiations following the opinion – in many cases, this prevents judicial proceedings.

Indexation of the rent

In addition to a one-off revision, many lease agreements include an annual indexation. For commercial premises, this is not a statutory right but a contractual one: the indexation clause must therefore be included in the agreement. In standard ROZ models, the rent is adjusted annually based on the CBS Consumer Price Index (CPI). In the event of high inflation, this can lead to substantial increases; judges have ruled that CPI indexation is not inherently unreasonable, but in exceptional cases, an appeal to unforeseen circumstances (Article 6:258 of the Dutch Civil Code) or to reasonableness and fairness may offer a solution. Conversely, if indexation has been overlooked for years, the landlord can generally still claim back up to five years (Article 3:308 of the Dutch Civil Code). If too much has been paid due to a calculation error, the tenant can reclaim this as an undue payment (Article 6:203 of the Dutch Civil Code). We will review the clause for you and determine what is legally sound.

Rent increase for residential property

Stricter, partly statutory frameworks apply to residential accommodation (Article 7:232 of the Dutch Civil Code). The government sets annual maximums, distinguishing between the free market sector and regulated (social) rent. In the regulated segment, the housing valuation system (points system) plays a central role in determining the permitted rent, and a statutory maximum percentage increase applies. In the free market sector, the annual increase is also subject to a statutory maximum. Under certain conditions, tenants can have a proposed increase reviewed by the Rent Commission. We advise professional landlords and housing corporations, as well as private tenants, on what is permitted in a specific case.

Rent adjustment disputes – our approach

A difference of opinion regarding the rent directly affects the operation of the leased property and the relationship between the parties. Where possible, we avoid recourse to the courts and first seek a substantiated solution based on expert advice and market figures. If this is not possible, our lawyers will litigate regarding the subsequent determination of the rent or the interpretation of the indexation clause. Moreover, a rent adjustment is often linked to other issues, such as renovation or defects in the leased property. This page is part of our broader expertise in Tenancy Law. Whether you manage a large corporation or run a sole proprietorship, our mixed teams of lawyers and in-house counsel are ready to assist you. Contact us to discuss the possibilities.