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Security Deposit in Commercial Lease: Differences with Residential Space

Security deposit rules for retail and office leases: higher amounts, pledging and delivery conditions.

1 min leestijd

Flexible Security Deposit in Commercial Space

In commercial lease (Article 7:301 DCC) no maximum; often 3-6 months' rent. Collateral for delivery and rent arrears.

Repayment Conditions

After end of lease, upon flawless delivery. Negotiated in lease: repair period, arbitration clause.

Specific Risks

  • Pledging: Landlord may pledge security deposit to bank.
  • Indexation: Often linked to rent index.
  • Disputes: To the Subdistrict Court or regular court.

Practical Advice

Include delivery report with independent party. Commercial lease offers less protection than residential space.

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