Hospitality in (rental) practice

For property owners, 'hospitality' can be very interesting when it comes to the rentability of the property. The term 'hospitality' - freely translated as 'hospitality' - expresses a recent development in society in which the customer experience is central. For landlords of healthcare complexes as well as landlords of apartment complexes and commercial spaces, it is important to clearly identify exactly what the tenant's needs are. After all, nowadays tenants do not only look at the number of square meters offered for a certain price, but rather pay attention to the service offered in the rented space.

Date: November 11, 2019

Modified November 14, 2023

Reading time: +/- 2 minutes

Hospitality and property management

For property owners, 'hospitality' can be very interesting when it comes to the rentability of the property. The term 'hospitality' - freely translated as 'hospitality' - expresses a recent development in society in which the customer experience is central. For landlords of healthcare complexes as well as landlords of apartment complexes and commercial spaces, it is important to clearly identify exactly what the tenant's needs are. After all, nowadays tenants do not only look at the number of square meters offered for a certain price, but rather pay attention to the service offered in the rented space.

Services

If a tenant can choose between two residential or commercial properties with approximately the same area or price, the degree of hospitality will be the deciding factor. The range of facilities in a residential complex or office building can be diverse.

It is important for tenants to feel at home in a building and feel that they no longer have to step outside the door for most things. A landlord of a building that houses a hospital, for example, may also offer a florist and a coffee bar in the leased space. Or landlords of office space make sure that the leased space also includes a parcel point, dry cleaning, security and good meeting facilities. For an apartment landlord, a service desk for all kinds of questions might be interesting, or an app that makes it easy to schedule appointments with the complex manager.

Landlord implications

For example, if one building contains office space as well as a coffee bar, a dry cleaner and a service desk, the landlord faces different rental regimes. This is because different legal rules apply to the office space than to the coffee bar. This is because the law has different rental regimes when it comes to business space. The coffee bar can fall under the rental regime for business space if it is accessible to the public. The tenant operating a coffee bar then, unlike the tenant of office space, enjoys far-reaching rent protection. This can have major consequences for a landlord when it comes to notice and termination of the lease, as well as changes in the rent.

If you want to learn more about the different rental regimes and the implications for the landlord, this article is very relevant.

Impact on tenants

In addition to extra living enjoyment, hospitality can also have rental law implications for tenants. Both landlords of residential and commercial properties and other spaces can pass on certain costs for the extra services to the tenants. It is important, however, that when the lease is entered into, the exact cost items are specified. To avoid future discussions, it is also advisable to agree on when and how the settlement of the service costs will take place.

Tenants who rent housing under a mixed tenancy and care agreement, for example, are often eligible for rent subsidies. The landlord of this care property can pass on the costs of certain services offered to the tenant. However, it should be considered whether the tenant does not lose his right to rent allowance in that case.

For this, it is important that the calculation rent does not exceed the rent allowance limit. The following categories count in determining the calculation rent:

Service costs that do not fall into one of these categories are not added to the bare rent for the rent allowance limit and are therefore not part of the calculation rent. These service costs are of course paid to the landlord. Therefore, the computed rent for rent supplement purposes is often lower than the monthly rent paid to the landlord.

Hospitality in hiring practice: conclusion

We think it is a very good development that real estate owners also see the importance of hospitality. If they focus on the experience of the tenant, this increases the value and lettability of the apartments, business premises or other spaces on offer. However, it should be borne in mind that increasing the degree of hospitality has consequences for both the landlord and the tenants. Think of the different rental regimes and the passing on of the costs for hospitality in the rent.


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