Many entrepreneurs who rent a shop, office, or hospitality business sooner or later have to deal with the landlord’s renovation plans. Think of major maintenance, remodeling, or sustainability upgrades. The landlord often wants to pass on the costs (in part) in the form of a rent increase. But is that allowed?
The tenancy law lawyers at Arslan Advocaten explain what the rights and obligations of tenant and landlord are when renovating commercial premises.
What is renovation?
Under the law, renovation includes both:
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Maintenance work (for example, addressing deferred maintenance, painting, new pipes).
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Improvements (for example, insulation, a new kitchen, expansion of the commercial space).
For commercial premises this can be drastic: a shopping center that is being renovated, or a hospitality business that must temporarily close.
May the landlord enforce renovation?
Yes, in principle the landlord has the right to renovate. But:
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The renovation must not be unreasonable for the tenant.
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The landlord must consult with the tenant.
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In the case of major renovations, the landlord can start legal proceedings if the tenant refuses.
Rent increase after renovation
The landlord can request a rent increase after renovation, but only under certain conditions:
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Agreement with the tenant
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In many cases, the tenant must agree to the proposed rent increase.
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Reasonableness
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The rent increase must be proportionate to the value of the improvements.
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Procedure via the court
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If the tenant and landlord do not agree, the court can decide whether both the renovation and the rent increase are reasonable.
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Temporary relocation during renovation
Sometimes temporary vacating is necessary to enable renovation.
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This is only allowed if the landlord can demonstrate that the work cannot be carried out without vacating.
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The tenant must be able to return to the commercial space after the renovation, unless agreed otherwise.
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Damage or loss of revenue may be borne by the landlord, depending on the situation.
Examples from practice
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Shop in Utrecht: the landlord renovated the shopping center and wanted to pass on a 30% rent increase. The court ruled that this was too high and reduced it to 10%.
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Restaurant in The Hague: had to temporarily close due to renovation. The landlord was required to pay compensation for loss of revenue.
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Office space in Amsterdam: The tenant objected to the renovation due to high costs. The court sided with the landlord because the improvements were necessary and the rent increase was reasonable.
Checklist for business owners during renovation
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📑 Check whether the renovation is truly necessary.
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🧾 Request a cost breakdown and justification for the rent increase.
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⚖️ File an objection if the renovation or increase is unreasonable.
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💶 Negotiate a temporary rent reduction in case of disruption or loss of revenue.
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👨⚖️ Involve a lawyer in case of a dispute or threatened legal proceedings.
Frequently Asked Questions (FAQ)
1. Can my landlord just raise the rent after a renovation?
No, only if it is reasonable and proportionate to the improvements.
2. Can I refuse to cooperate with renovation?
Only if the renovation is unreasonable or unnecessary. Often, a judge decides in that case.
3. Do I have to temporarily vacate my business premises during renovation?
Only if there is really no other way. You must be able to return afterwards.
4. Do I receive compensation for loss of revenue due to renovation?
In some cases, yes. This depends on the circumstances and the agreements.
Conclusion
Renovation of business premises can lead to rent increases and temporary inconvenience. Landlords may carry out renovations, but tenants are entitled to protection against unreasonable costs or consequences.
The tenancy law attorneys of Arslan Lawyers assist entrepreneurs in negotiations and proceedings regarding renovation and rent increases.
