Many entrepreneurs rent business premises for their shop, restaurant or office. But what happens if you temporarily cannot pay the rent and rent arrears arise? The consequences can be serious: the landlord can demand termination of the lease and eviction of the premises.
The tenancy law attorneys at Arslan Advocaten explain what the rules are, when a landlord can terminate, and how you as an entrepreneur can defend yourself.
What are rent arrears?
Rent arrears arise as soon as you do not pay the rent on time. This can be from as little as one month of arrears, but a landlord will often only take action after a longer period of arrears.
When can the landlord seek termination?
-
In case of significant rent arrears
-
Judges differ in their rulings, but usually rent arrears of 3 months or more are sufficient grounds for termination.
-
With shorter arrears, the judge takes into account whether you consistently pay late.
-
-
In case of persistent payment problems
-
If it is clear that you can no longer pay the rent on an ongoing basis, the judge may proceed to termination more quickly.
-
-
In case of breach of contract in addition to rent arrears
-
For example, if you also breach other obligations under the contract, such as illegal subletting or nuisance.
-
Procedure for termination and eviction
-
Notice of default: the landlord usually first sends a reminder or demand letter.
-
Summons: if payment is not made, the landlord initiates proceedings at the subdistrict court.
-
Judicial review: the judge assesses whether the arrears are serious enough.
-
Termination & eviction: if the claim is granted, you must vacate the premises.
Tenant defenses
Entrepreneurs have various options to defend against termination:
-
Make payment after all (often this can still make a difference up to the hearing).
-
Show that the arrears are temporary (for example due to corona or a seasonal dip).
-
Challenge too high service charges or unjustified claims.
-
Request for a payment arrangement submit.
Examples from practice
-
Hospitality business owner in Rotterdam: had 4 months of rent arrears. The judge terminated the lease agreement, but granted 1 more month to clear the arrears.
-
Retail business in Utrecht: had 2 months in arrears due to seasonal issues. The judge rejected termination because the payment problems were temporary.
-
Office in Amsterdam: was structurally behind on rent. The judge terminated immediately and the landlord was allowed to evict.
Checklist for entrepreneurs with rent arrears
-
📑 Respond immediately to the landlord’s reminders.
-
💶 Pay off as much as possible to reduce the arrears.
-
🧾 Check whether the claim is correct (rent, service charges, interest).
-
⚖️ Seek legal counsel in time for your defense.
-
🤝 Negotiate a payment plan.
Frequently Asked Questions (FAQ)
1. Can my landlord terminate my lease immediately if I’m in arrears?
No, only a judge can terminate the lease.
2. How many months of arrears usually lead to termination?
Often 3 months or more, but it depends on the circumstances.
3. Can I stay if I pay the arrears?
Yes, paying before the hearing can often prevent termination.
4. Can the landlord evict me from the premises without a judge?
No, eviction is only allowed with a court order from a judge.
Conclusion
Rent arrears can have serious consequences for business owners. In cases of persistent arrears, a judge can terminate the lease and allow eviction. Still, there are often ways to mount a defense, for example by catching up on arrears or agreeing to a payment plan.
The rental law attorneys of Arslan Advocaten assist entrepreneurs in proceedings concerning rent arrears, negotiate with landlords and defend against threatened termination.
Frequently Asked Questions
What are rent arrears, and when do they typically lead to lease termination?
Rent arrears occur when rent is not paid on time, often after a month of unpaid rent. Landlords usually consider termination when arrears reach three months or more, but this can vary depending on the situation.
Can I defend myself if my landlord wants to terminate my lease due to rent arrears?
Yes, tenants can defend themselves by making payment before the hearing, proving arrears are temporary, challenging unjustified charges, or requesting a payment plan. Seeking legal advice early can also improve your chances of a favorable outcome.
What steps does a landlord usually take before initiating eviction due to rent arrears?
The landlord typically sends a reminder or demand letter, then initiates court proceedings if payment is not made, leading to a judicial review where the court assesses the arrears and decides on termination.
What should I do if I am experiencing temporary financial difficulties and owe rent?
You should respond promptly to reminders, pay off as much rent as possible, verify the claim’s accuracy, and consider requesting a payment arrangement or seek legal counsel to explore your options.
