People who rent residential , retail, or office space (almost) always enter into a lease agreement. In practice, a model is often used for this. The best-known model was developed by the Council for Real Estate (the ROZ model). The penalty clause can be found in the General Provisions of the ROZ model. The penalty clause is often unclear and regularly leads to legal disputes. A tenancy law attorney is therefore happy to advise you on including a clear penalty clause in the lease agreement. RechtNet Advocaten is also happy to assist you with the interpretation of the penalty clause and the collection of outstanding fines.
Clear penalty clause in the rental agreement
The penalty clause in the General Provisions of the ROZ model often reads as follows:
‘Each time an amount owed by the tenant under the lease agreement is not paid promptly on the due date, the tenant automatically owes the landlord an immediately payable penalty of 1% of the amount owed per calendar month, starting from the due date of that amount, with each month counted as a full month, with a minimum of 300 euros per month.’
In practice, it proves difficult for judges and lawyers to interpret this text in the same way. There are also frequent discussions about this clause in case law.
Various statements
In recent years, numerous judges have ruled on cases involving penalty clauses. However, the outcomes vary. These numerous rulings show that, in practice, penalties for late payment by tenants are not always awarded. Especially in the case of a lease agreement with a low rent, there is a good chance that tenants’ penalties will be reduced. A ruling by the Amsterdam Court of Appeal of September 8, 2015, also shows that tenants cannot always successfully appeal for a reduction of the penalty. This is especially true in the case of high rents and where the tenant can be considered a professional party.
Advice on the penalty clause
It’s wise to seek sound advice when entering into a lease agreement, particularly regarding the penalty clause. Landlords are advised to clarify the penalty clause with an example. This helps the tenant understand what’s meant. Tenants can also try to reduce the penalty amount in the lease agreement. The period for which the penalty is due can also be adjusted.
Non-binding advice?
Our tenancy law attorneys are happy to assist you. For free advice on penalty clauses in a lease agreement, please contact us directly at 073 – 615 43 11 or info@rechtnet.nl . A tenancy law attorney will be happy to assist you!
Mr. Casimir Vink