Rent indexation unrealistically high
Does an agreed rent indexation always apply? The District Court of The Hague ruled on 4 May 2023, ECLI:NL:RBDHA:2023:8786, that a rent indexation based on the change in the CBS CPI could not be increased. The rent increase was unrealistically high.
The rental agreement stated that the rent would be indexed annually in accordance with the commonly used indexation clause. The indexation was based on the change in the CPI of Statistics Netherlands. On this basis, the rent would be increased by 14.5% with effect from 1 January 2023. The reason for the sharp increase is that energy prices had risen very substantially as a result of the war in Ukraine.
Statistics Netherlands had meanwhile announced that it had adopted a new calculation method for rent indexation, as a result of which a lower percentage would apply from June 2023. According to the court, the fact that Statistics Netherlands would not apply the new method until June 2023 does not mean that the old method should still be used. According to the court, it is sufficiently plausible in advance that the application of the old calculation method as of 1 January 2023 has led to an excessively high, unrealistic price index figure.
The landlord’s claim to increase the rent on the basis of indexation based on the change in the CBS CPI was rejected by the court.
It follows from this ruling that an agreed rent indexation is not inviolable, despite the fact that it has been agreed in black and white.
Ludwig & Van Dam lawyers, franchise legal advice.
Do you want to respond? Then email to dolphijn@ludwigvandam.nl
Other messages
Article De Nationale Franchise Gids: “Information obligations of the intended franchisee under the Franchise Act” – dated August 7, 2020 – mr. AW Dolphin
Although the purpose of the Franchise Act is to protect franchisees against franchisors, a number of obligations have also been laid down for franchisees.
Legislative text of the Franchise Act – dated July 24, 2020 – mr. AW Dolphin
The legal text of the Franchise Act was published in the Staatsblad on 1 July 2020. The full legal text reads as follows:
Law Franchise – dated July 23, 2020 – mr. AW Dolphin
The Franchise Act will have a considerable impact on both franchisors and franchisees.
Contractual dissolution requirements not observed? No legal dissolution of the franchise agreement – dated July 23, 2020 – mr. C. Damen
Can a franchisor terminate the franchise agreement if it has failed to comply with its own contractual requirements?
Legal ban on unilaterally changing opening hours by the franchisor – July 13, 2020 – mr. J. Strong
Legislative proposal of the State Secretary which, in short, means that the shopkeeper may not be bound by unilateral changes to the opening hours during the term of the agreement.
No right to extension of franchise agreement – July 6, 2020 – mr. AW Dolphin
Can a franchisor refuse to renew the franchise agreement if the franchisee does not agree to amended terms of a new franchise agreement?