Business premises leases: what should an entrepreneur consider?

Leasing business premises: which rules apply to you?

Leasing business premises may seem straightforward, but the lease can have major consequences for your business. Consider the lease term, your options for giving notice, and the protection you have if the landlord wants to end the lease.

Different statutory rules apply to business premises in the Netherlands. The applicable regime depends on the type of premises and how they are used.

Shop, hospitality premises, or office: what is the difference?

Dutch tenancy law distinguishes between business premises under Section 7:290 and Section 7:230a of the Dutch Civil Code.

Section 7:290: for example, a shop or hospitality premises

In broad terms, the Section 7:290 regime applies to premises accessible to the public, such as shops, hospitality businesses, and certain craft businesses.

The law gives tenants of these premises relatively extensive protection.

Lease term and extension

For Section 7:290 premises, the starting point is an initial lease term of five years. The agreement is then in principle extended by a further five years, bringing the total lease term to ten years.

Statutory rules also apply when ending the lease. A landlord cannot simply terminate it. In certain circumstances, a court may have to decide whether the lease actually ends.

This can be important to an entrepreneur because it gives greater certainty about the place from which the business operates.

Section 7:230a: for example, an office or storage space

Do you lease an office, storage space, practice premises, or other business premises that do not fall under the Section 7:290 regime? The Section 7:230a regime may then apply.

The tenant's statutory protection is more limited, so the arrangements in your lease are particularly important.

The arrangements in your lease

For Section 7:230a premises, the landlord and tenant have more freedom to make their own arrangements. Provisions on the lease term, notice, and extension can therefore differ considerably between contracts.

Both tenant and landlord should know in advance which arrangements apply and what options exist for ending the lease. Arrangements on the lease term and extension can also be particularly important.

Tip: Have the lease reviewed before signing it. This gives you advance clarity about your rights and obligations and about provisions that may still be negotiable.

What should you consider before signing?

Lease term and notice

Check how long you will be bound by the agreement and when and how you can give notice. Put that date in your diary. Missing a notice deadline may mean that the lease continues for longer than you expected.

Service charges

Service charges are a common source of disputes in practice. Check precisely what they include and whether they are settled annually.

Subletting

Would you like to lease part of your business premises to another entrepreneur in the future? Check whether subletting is permitted. The landlord's consent is often required.

Condition of the business premises

At the start of the lease, record the condition in which you receive the premises. Photographs and a clear description can help prevent later discussions about damage and repairs.

Have your lease reviewed

A lease can bind your business for years. It is therefore sensible to know in advance which obligations you are assuming and which arrangements may still be open to negotiation.

At Legal Comfort, I help entrepreneurs review, draft, and negotiate leases for business premises.

Have you received a lease, would you like one drafted, or would you like to understand your legal position in a current tenancy? Please get in touch. I will be happy to look at the situation with you.