Dividing types of premises in Dutch rental law
By Joost Donkersloot, TeekensKarstens advocaten notarissen
Foreign investors wishing to lease premises or companies wishing to rent space (business space or housing for employees) are advised to be aware of the division that exists in Dutch law between leasing and renting. This division entails several differences in the legal rules of rent law.
Housing more or less speaks for itself. Housing is defined by a large number of legal rules that constitute mandatory or semi-mandatory law protecting the lessee. For terminating a contract, a lessor needs to fulfil a large number of demands and even undergo a judicial proceeding. The same applies to adjusting the rental price.
Retail space also seems quite clear, but the correct qualification of this kind of business space is sometimes slightly more difficult. Of course, it includes what would normally be called retail. It also includes craft enterprises and most of the hospitality industry. The crucial criterion is that there is an accessible public space for the immediate delivery of merchandise or a service. The law is also comprehensive concerning this type of space and contains many semi-mandatory laws. As in housing, the lessee is well-protected against terminating the contract or adjusting the rental price, though in a slightly different way.
Finally, there is office space and other space: i.e. when the space is not for retail or housing. However, this kind of space has very few special legal rules. The protection of the lessee against terminating the contract is limited. There are no rules for adjusting the price – and therefore no possibility to do so at all. The tools to use should be negotiating and “playing” with the possibilities of terminating the contract.
TeekensKarstens advocaten notarissen,Leiden, Alphen aan den Rijn, The Netherlands
T: +31 71 535 80 00
TeekensKarstens lawyers notaries is the largest legal services provider in the area called “Rijnland”, centrally located between Amsterdam and The Hague and Utrecht, and just fifteen minutes from Amsterdam Schiphol Airport. From its offices in Leiden and Alphen aan den Rijn over fifty lawyers and (candidate) notaries operate and provide full service to mainly large and medium enterprises, (semi-) public sector and individuals. Hailing from the Netherlands and beyond.
Joost Donkersloot is based at TK in Leiden, where he holds the position of senior attorney at law in the practice group real estate, and he is also a member of the GGI Real Estate Practice Group. His core focus within real estate is rental law and administrative law. In addition, he is specialised in the leisure business. He is also a member of TK DACH, the German desk.
published: April 2014