Rent adjustment

Rent adjustment – commercial space

The lessee and the lessor determine the rent themselves at the beginning of the lease. If a lessee or lessor of commercial space wishes to adjust the rent during the term of the lease period and the lessee/lessor does not agree with the proposal to change the rent, he can claim from the court that the rent be adjusted.

This adjustment cannot, however, be claimed at any time during the lease period. In the case of a fixed-term lease, this is only possible after the agreed term and in all other cases only if 5 years have elapsed since the day on which the last change has taken effect or the day on which the court has ruled on it.

Before the case is brought before the court, an expert must be appointed jointly to draw up a report on the rental value.

When determining the correct rent, the court must, among other things, look at the level of rent for comparable properties in the vicinity. A lessor may, in preliminary relief proceedings, demand an advance on the rent increase in anticipation of the decision in the (longer) procedure to adjust the rent.

Rent adjustment – other spaces

Increased rent for other commercial space, such asoffice or storage space, or a cinema, beauty salon or practice space,is not subject to statutory regulations in the Netherlands. When drawing up the lease, the lessee and lessor agree on a rent that can be periodically increased.

Because the rent increase for other commercial space has not been determined, the lessee and lessor are free to make agreements about the rent increase. Of course it can also be agreed not to adjust the rent for a certain period.

The judge cannot adjust the agreed rent during the lease period. It is therefore important that – prior to the lease period – the agreements made regarding the rent and the rent increase are properly recorded in the lease.

Rent adjustment – living space

Changing a rental price is in principle possible. However, a distinction should be made between rent adjustment in the private sector rented accommodation and the public-sector rented accommodation. In case of a liberalised contract, a rent higher than €710.68 has been agreed at the start of the tenancy agreement. The following rules for rent adjustments apply to these tenancy agreements:

  • The rent may only be increased once every 12 months. The points system for rented houses and the maximum rental prices do not apply. Often an indexation clause is included in contracts, but in principle the parties themselves decide what they agree in terms of annual rent increases.
  • The landlord is not obliged to inform the tenant of the rent increase within a certain period of time.
  • The landlord may terminate the tenancy agreement if the tenant refuses a reasonable proposal for entering into a new tenancy agreement that includes a rent increase. If the tenant does not agree to the termination in writing, only the court can terminate the tenancy agreement.

The tenant of a house in the private sector rented accommodation may request the rent commission to make a decision on the reasonableness of the rent within six months of commencement of the tenancy agreement. In the case of a tenancy agreement with a duration of two years or less, the tenant may also request a review within six months of the end of the tenancy agreement.

The tenancy agreement in the public-sector rented accommodation may also contain an indexation clause, allowing the rent to be increased annually. The government sets a maximum percentage increase in the rent.