Service charges

Service charges are the amounts a tenant pays alongside the bare rent for supplies and services, such as heating, cleaning of communal areas, window cleaning, a caretaker and garden maintenance. They are usually charged as an advance and settled afterwards.

Legal basis

Article 7:237(3) of the Dutch Civil Code defines service charges. For residential accommodation, Article 7:259 requires the landlord to provide an annual statement within six months of the end of the calendar year, in a reasonably prepared overview. Article 7:261 entitles the tenant to ask the Rent Tribunal to rule on the payment obligation; for self-contained accommodation that is possible up to two years after the end of the period covered. The Service Charges Decree lists the items that always count as service charges. For business premises there is no mandatory regime: what is passed on is determined by the lease, usually through the standard clauses of the Dutch Real Estate Council model.

How it works in practice

The statement must be transparent item by item and state the allocation key. The tenant is entitled to inspect the underlying invoices. For business premises the argument frequently concerns whether an item falls under the landlord’s maintenance obligation or under service charges; replacement and major maintenance are in principle for the landlord.

Where it goes wrong

Landlords deliver the statement late or not at all, and can then no longer claim the excess over the advance. A second error is passing on management costs or investments that do not qualify as service charges. Third, business tenants allow the contractual period for disputing the statement to expire.

Related terms

Service charges connect to residential rent protection, the housing valuation system and the lease of business premises.

Does your statement look wrong? Our real estate lawyers assess the items and the deadlines.