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Difference in Security Deposit for Land Lease vs. Commercial Space

Differences in security deposit for land vs. commercial space lease. Discover legal nuances, maxima and procedures for entrepreneurs.

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The security deposit for land lease differs significantly from that for commercial spaces. For land (parking spaces, plots), there is no statutory maximum such as the threefold rent for shops (7:220 BW). Land lease falls under general lease rules, with emphasis on reasonableness. Commercial spaces often require higher security deposits for fitting-out costs, with strict administrative requirements. For retention on land, it concerns soil or surface damage; for commercial spaces, renovations. The repayment period is one month for both, but commercial lessors must provide an annual account. Land lease tenants have less protection than shopkeepers, who can demand indexation. Practice: in a mixed commercial land situation (plot + building), the regulation applies per part. Disputes over security deposits in a commercial context go to the subdistrict court, with possible mediation via Vastgoed Belang. Advice: make the distinction explicit in contracts. Tenants: demand transparency; lessors: document everything. This prevents costly procedures. (198 words)