New rental law

On August 1, 2003, the new rental legislation came into effect. The new rental legislation has few consequences for the rental of business space. The legal rent protection for a period of five plus five years will be maintained. In this contribution, a number of changes with regard to the lease of industrial space will be discussed.

Perhaps the most eye-catching change is the new numbering of the articles relating to the rental of industrial space. Previously this was article 7a: 1624 DCC and further, with effect from 1 August 2003 article 7: 290 DCC and further. The usual term 1624 Commercial Space is therefore no longer correct and should now be referred to as 290 Commercial Space.

At the end of a fixed-term rental agreement or whenever at least five years have passed, both the tenant and the landlord can demand that the court determine the rent if it no longer corresponds to that of comparable commercial space locally. This regulation is not new, but such a claim is only admissible under the new legislation if it is accompanied by advice on the further rental price, drawn up by one or more experts jointly named by the parties. If the parties have not reached agreement on this matter, the court will appoint an expert. Under the new tenancy law, the tenant will have to ask the landlord for permission to change the rented property. Such permission is not necessary for changes that can be reversed at the end of the rental without significant costs. With regard to the lease of business premises, this concerns regulatory law, so that the parties are free to make further agreements.

At the end of the rental agreement, the rented property must be returned in the condition in which the tenant received it according to the description of that condition. In the absence of such a description, the tenant is deemed to have received the rented property in the condition as it is at the end of the lease. It is therefore very important at the start of a rental agreement to draw up a description of the condition of the rented property, for example by means of an inspection report with photos, and to have it signed by both parties.
Finally, on 30 July 2003, the Real Estate Council drew up a new model lease agreement for retail space and other industrial space within the meaning of Section 7:290 of the Dutch Civil Code with associated general provisions. If new rental agreements are concluded, it is advisable, if a model is used, to check whether the most recent version of the model is used.

Ludwig & Van Dam franchise attorneys, franchise legal advice