Many entrepreneurs rent commercial space for their shop, restaurant or office. But what happens if you temporarily cannot pay the rent and incur rent arrears? The consequences can be serious: the landlord can demand termination of the lease and eviction from the property.
The tenancy law lawyers of Arslan Lawyers explain what the rules are, when a landlord can terminate and how you can defend yourself as an entrepreneur.
What is rent arrears?
Rent arrears occur as soon as you do not pay the rent on time. This is possible from one month in arrears, but a landlord will often only take action if the arrears are longer.
When can the landlord demand dissolution?
In the event of a significant rent arrears
Judges have different opinions, but usually a arrears of 3 months or more are sufficient reason for dissolution.
For shorter arrears, the judge will consider whether you are structurally late. pays.
In the event of persistent payment problems
If it is clear that you can no longer pay the rent structurally, the court can proceed with termination more quickly.
In the event of breach of contract in addition to rent arrears
For example, if you also violate other obligations under the contract, such as illegal class="wpil_keyword_link" href="https://arslan.nl/onderhuur-van-bedrijfruimte-wat-mag-wel-en-niet/" title="Subletting of business space: what is and is not allowed?">subletting or nuisance.
Procedure for dissolution and eviction
Notice of default: the landlord usually sends first a reminder or summons.
Summons: in the event of non-payment, the landlord will start a procedure with the subdistrict court.
Judicial review: the judge assesses whether the backlog is serious enough.
Dissolution & eviction: if the claim is granted, you must leave the building.
Defences of the tenant
Entrepreneurs have various options to defend against dissolution:
Make payment after all (this can often make a difference up to the hearing).
Demonstrate that the arrears are temporary (for example by corona or a seasonal dip).
Defense against excessively high service costs or unjustified claims.
Request for submit a payment arrangement.
Practical examples
Catering entrepreneur in Rotterdam: was 4 months behind in rent. The judge terminated the rental agreement, but granted a further 1 month extension to pay the arrears.
Retail trade in Utrecht: was 2 months behind due to seasonal problems. The judge rejected dissolution because the payment problems were temporary.
Office in Amsterdam: was structurally behind on rent. The judge immediately dissolved and the landlord was allowed to evict.
Checklist for entrepreneurs with rent arrears
๐ Respond immediately to reminders from the landlord.
๐ถ Pay off as much as possible to reduce the arrears.
๐งพ Check whether the claim is correct (rent, service costs, interest).
โ๏ธ Contact a lawyer in a timely manner for your defense.
๐ค Negotiate a payment arrangement.
Frequently asked questions (FAQ)
1. Can my landlord immediately terminate my rental contract if there is arrears?
No, only the judge can terminate the rental agreement.
2. How many months behind schedule usually lead to dissolution?
Often 3 months or more, but it depends on the circumstances.
3. Can I still stay if I pay the arrears?
Yes, payment before the hearing can often prevent dissolution.
4. Can the landlord evict me from the property without a judge?
No, eviction is only allowed with a judgment from the judge.
Conclusion
Rent arrears can have major consequences for entrepreneurs. In the event of structural arrears, the judge can terminate the lease and allow eviction. However, there are often opportunities to put up a defense, for example by catching up on arrears or agreeing a payment arrangement.
The tenancy law lawyers of Arslan Lawyers assist entrepreneurs in procedures regarding rent arrears, negotiate with landlords and defend themselves against threatened dissolution.
