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Security Deposit in Commercial Leases in Amsterdam: Differences from Residential Property

Security deposit regulations for retail and office leases in Amsterdam: higher amounts, pledging to banks, and strict handover conditions.

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Flexible Security Deposit for Amsterdam Business Premises

For commercial leases in Amsterdam (Article 7:301 of the Dutch Civil Code), there is no maximum security deposit amount; typically, 3-6 months' rent is required for shops on Kalverstraat or offices on the Zuidas. This collateral covers handover conditions and rent arrears, which is crucial in Amsterdam's dynamic real estate market.

Repayment Conditions in Amsterdam

After the lease term ends, provided the property is handed over in perfect condition according to Amsterdam standards. Negotiate repair timelines and arbitration through the Real Estate Arbitration Board in the lease agreement, which is common practice in the capital.

Specific Risks in Amsterdam

  • Pledging: Landlords may pledge the security deposit to banks such as ING or ABN AMRO, a common practice for large Amsterdam properties.
  • Indexation: Often indexed to the Amsterdam rent index or CPI, with increases due to high property prices.
  • Disputes: Resolved by the District Court of Amsterdam or through the Rent Disputes Committee in the region.

Practical Advice for Amsterdam

Have a handover report prepared by a certified inspector from Amsterdam, such as through the Dutch Association of Real Estate Brokers (NVM). Commercial leases offer less tenant protection than residential properties under the Amsterdam Housing Ordinance.