Reinier advises national and international companies
reinier.russell@russell.nl +31 20 301 55 55Lessees and lessors have different rights and duties, depending on whether the work can be considered as renovation or (urgent) maintenance. How can you determine whether it’s a matter of maintenance or of renovation?
Buildings may be timeless but every now and then work will have to be carried out in order to prevent decay. Lessees and lessors have different rights and duties, depending on whether the work can be considered as renovation or (urgent) maintenance.
Renovation is popularly referred to as major maintenance (groot onderhoud). However, legally speaking renovation and maintenance are not the same and this difference may have major consequences for lessees and lessors of all kinds of real estate. The term renovation is only applicable if work is carried out to improve the enjoyment under a lease, for instance, by insulating or double glazing a house. This will improve living comfort. Renovation also takes place when old store premises are demolished and replaced by new ones. However, if the lessor replaces a defective single pane with double glazing, this will be considered as maintenance. The work is (primarily) carried out to correct a defect and not to improve the living comfort of the lessee.
1) In the event of a renovation, a lessor can request an increase in rent. In order to do so, the lessor has to present a reasonable proposal to the lessee. The lessee can request a court to check the reasonableness of the proposal. Maintenance cannot be offset against the rent. Maintenance costs are considered to be included in the rent. However, the lessee is responsible for part of the maintenance.
2) In the event of a renovation, the lessee can claim a contribution to removal and refurbishment expenses. The lessee is entitled to a contribution to these costs, thus not to a reimbursement of all removal and refurbishment expenses. In the event of maintenance, the lessor does not have to make any payments to the lessee. The lessee has to offer the lessor the opportunity to perform the maintenance work.
3) Renovation can also be a reason for the termination of the lease, especially if the renovation is so drastic that renovation is not reasonably possible with a continuation of the lease. This may be the case, for instance, if store premises disappear after a renovation because a shopping centre will be reorganized or the premises will be used for different purposes. Even if a renovation can take place with a continuation of a lease but the lessee does not accept the reasonable proposal referred to above, this may be a reason for the lessor to terminate the lease.
The three juridical differences consist of:
Do you have any questions regarding maintenance or renovation? Or do you have any other questions concerning your real estate? The specialists at Russell Advocaten will gladly provide legal advice. Please contact us:
The WHOA makes it easier for a company facing bankruptcy to avoid bankruptcy. This can be done through a binding agreement with all creditors, even if they do not all agree to the arrangement. What rights do creditors have in WHOA proceedings?
On 12 June 2023, the new EU General Product Safety Regulation entered into force. As of 13 December 2024, products must comply with this regulation. What are the consequences of the new Product Safety Regulation? Which entrepreneurs should start taking measures now?
The main difference between 230a and 290 business premises is the minimum term of lease. The longer lease term for 290 business premises gives retail and hospitality businesses more time to recoup their investments. What are the lease terms for the different types of business premises?
From 1 July 2023, manufacturers, importers and retailers of textiles will be responsible for the collecting and recycling of their products. They must also report how they have fulfilled this Extended Producer Responsibility. What do manufacturers, importers and retailers have to bear in mind in the future?
During the summer months of 2022, the necessary relevant changes at the European level for, in particular, suppliers and distributors, founders of legal entities and employers came into force. It is therefore time for these distributors and employers to update their distribution and labor agreements, while it becomes easier for foreign founders of companies to establish themselves in the Netherlands for the first time or expand their presence here.
Leasing 230a or 290 business premises? What do these terms mean anyway? And, most importantly, what are the consequences of this difference for lessors and lessees of business premises?
