Deposit for Retention Grounds in Rotterdam

What is a deposit for retention grounds?

A **deposit** is an amount that a tenant pays in advance to the landlord before the rental of land is taken into use. This deposit differs from a **rental deposit** (as with housing) because it specifically concerns real property such as land, parking spaces, garden plots, or caravan sites. The deposit is intended to protect the landlord against possible damage, repair costs, or unpaid rent.

In contrast to a **rental agreement for housing**, where the Housing Rental Act 2015 (WH2015) imposes strict rules on deposits, there are fewer statutory restrictions for **retention grounds**. This is because land does not always fall under the same protection rules as housing. Nevertheless, important rules apply here as well that you as a tenant or landlord must know.

Statutory basis: what does the law say?

For **retention grounds**, there are no specific laws like the WH2015, but general rules from the Dutch Civil Code (BW) still apply. Important articles are:

• Article 7:912 DCC: This article regulates that a deposit may only be requested if it is reasonable and not disproportionately high. The landlord must be able to demonstrate that the deposit is necessary to cover damage or costs.
• Article 7:913 DCC: The deposit must be managed by the landlord and may not be used for purposes other than those for which it is intended (for example, rent arrears or damage).
• Article 7:914 DCC: At the end of the rental period, the deposit must be refunded, unless there are valid reasons not to do so (for example, damage or debts).

In addition, there may be **agreements** between the tenant and landlord in which specific arrangements have been made regarding the deposit. These arrangements must always be recorded in the rental agreement and must be reasonable.

Difference between deposit for land and housing rental

For **housing rental**, stricter rules apply, such as:

• The deposit may amount to a maximum of 2 months' rent (art. 7:100 WH2015).
• The deposit must be refunded within 6 months after the end of the rental period (art. 7:101 WH2015).
• The landlord must keep a deposit account and provide the tenant with information about it.

For **retention grounds**, these rules do not apply. Here, only the Dutch Civil Code applies, which means the deposit may be higher and the repayment period is more flexible. Nevertheless, it is always advisable to record the deposit in the contract and keep it reasonable.

What is a reasonable deposit?

How high the deposit may be depends on various factors, such as:

• Type of land: For a simple parking space, a lower deposit is reasonable (for example €100–€300), while for a caravan site or land with fixed installations (such as a garden shed), a higher deposit (€500–€2000) may be requested.
• Risk to the landlord: If the land is frequently damaged (for example, by digging or building), the deposit may be higher.
• Rent price: A deposit equal to 1–3 months' rent is often considered reasonable, but this is not a statutory rule.

Note: If the deposit is disproportionately high (for example €5000 for a simple parking space), this may be considered unfair. In such a case, as a tenant, you can challenge the deposit.

Practical examples