Garage Box Rental Law: Your Legal Options

Questioner

LS We have been renting a garage box for private use for years. Rent paid monthly. As of 1-1-2015 transferred to another owner. Current lease agreement has also been taken over. Monthly rent has also been adjusted (small amount). Now we receive a letter from the new landlord stating that 21% VAT will also be charged immediately. Reference is made to a ruling by the Breda court stating that garages are also subject to VAT. We also read on the tax authorities' website that garages are always subject to VAT. So that was already applicable when concluding the lease. The rental agreement does not state that the rental price is exclusive of VAT. In our opinion, it is inclusive of VAT. We therefore do not agree with the announced 21% VAT levy. Landlord informed of this in writing. Landlord's response is: the monthly rent will be increased by 21%. We also find this unacceptable. After all, the lease agreement does not contain any provisions regarding rent increases. We have always accepted the annual rent increase of approx. 3 to 4%. However, we do not find an additional increase of 21% reasonable because no significant improvement or expansion has taken place to the garage box. We have also filed an objection with the landlord for the announced 21% rent increase. The landlord's response is now: termination of the lease with the request to deliver the garage box broom clean by dd. Of course we don't agree with that either. Our question: What position do we have as tenants in relation to the landlord and how strong is our position? Well, what are our legal options?

Lawyer

The rents of a garage box are indeed subject to VAT and must therefore be paid. Unfortunately, I cannot judge whether the then landlord also paid VAT and charged this in the rent or whether he forgot to charge it. For this I would have to look deeper. In the case of private rental, it is true that the landlord can determine the prices himself and also how this is invoiced. He has indicated to you that the rental agreement and the invoicing thereof are changing somewhat. If you do not agree, he can terminate the agreement. This can be prevented if you agree and possibly enter into discussions with the landlord to reach an agreement. If you want advice and assistance, I can assist you with this.

Questioner

Thanks for your response. So a tenant has no legal protection in this situation and the landlord can determine the rent as he wants? An increase of the rent by 21% without significant improvement of the property is not unreasonable? Well, the tenant is put in a bind and just has to accept it? I can't imagine that in our well-organized Netherlands.

Lawyer

Unfortunately not, a tenant only enjoys rental protection on residential premises and garages are not covered by this.