Many entrepreneurs who rent a shop, office or catering business will sooner or later have to deal with renovation plans from the landlord. Consider major maintenance, renovation or sustainability. The landlord often wants to pass on the costs (partly) in the form of a rent increase. But is that allowed?
The tenancy law lawyers of Arslan Advocaten explain the rights and obligations of the tenant and landlord when renovating business premises.
What is renovation?
The law understands this under renovation:
Maintenance work (e.g. repair of deferred maintenance, painting, new pipes).
Improvements (e.g. insulation, new kitchen, expansion of the business premises).
For business premises, this can be drastic: a shopping center that is being renovated, or a catering business that has to close temporarily.
The landlord is allowed to carry out renovations. enforce?
Yes, the landlord in principle has the right to renovate. But:
The renovation may not be unreasonable for the tenant.
The landlord must consult with the tenant.
In the case of major renovations, the landlord can initiate legal proceedings if the tenant refuses.
Rent increase after renovation
The landlord can request a rent increase ask after renovation, but only under certain conditions:
Agreement with the tenant
In many cases the tenant must agree to the proposed rent increase.
Reasonability
The rent increase must be in proportion to the value of the improvements.
Procedure through the court
If the tenant and landlord do not agree, the judge can decide whether the renovation and rent increase are reasonable.
Temporary evacuation during renovation
Temporary evacuation is sometimes necessary to make renovation possible.
This is only allowed if the landlord can demonstrate that the work cannot be carried out without evacuation.
The tenant must be able to return to the business premises after the renovation, unless otherwise agreed.
Damage or loss of turnover may be borne by the landlord, depending on the situation.
Practical examples
Shop in Utrecht: landlord renovated the shopping center and wanted to pass on a 30% rent increase. The judge ruled that this was too high and moderated it to 10%.
Restaurant in The Hague: had to close temporarily for renovation. The landlord was obliged to pay compensation for loss of turnover.
Office space in Amsterdam: tenant opposed renovation due to high costs. The judge ruled in favor of the landlord, because the improvements were necessary and the rent increase was reasonable.
Checklist for entrepreneurs during renovation
📑 Check whether the renovation is really necessary.
🧾 Request a cost overview and substantiation of the rent increase.
⚖️ Object if the renovation or increase is unreasonable is.
💶 Negotiate a temporary rent reduction in the event of inconvenience or loss of turnover.
👨⚖️ Hire a lawyer in the event of a dispute or threatened proceedings.
Frequently asked questions (FAQ)
1. Can my landlord simply increase the rent after renovation?
No, only if this is reasonable and in proportion to the improvements.
2. Can I refuse to participate in renovation?
Only if the renovation is unreasonable or unnecessary. The judge often decides in that case.
3. Do I have to temporarily leave my business premises during renovation?
Only if there is absolutely no other option. You should be able to return afterwards.
4. Will I receive compensation for loss of turnover due to renovation?
In some cases, yes. This depends on the circumstances and agreements.
Conclusion
Renovation of business premises can lead to rent increases and temporary nuisance. Landlords may carry out renovations, but tenants have the right to protection against unreasonable costs or consequences.
The rental law lawyers of Arslan Advocaten assist entrepreneurs in negotiations and procedures regarding renovation and rent increases.