Is Indexation of the Deposit Permitted in Leiden?
Yes, in Leiden, the deposit may be adjusted annually for inflation in accordance with Article 7:249 of the Dutch Civil Code (BW), provided this is explicitly included in the rental agreement for a property in this university city. This adjustment follows the Consumer Price Index (CPI) of Statistics Netherlands (CBS), which is crucial in Leiden's tight rental market where many temporary contracts are common.
Calculation Method for Leiden
Formula: New deposit = Old deposit × (New CPI / Old CPI). For example: With a deposit of €1,200 in Leiden, where the CPI rises from 120 to 125 due to local inflationary pressures, the new deposit becomes €1,250. This adjustment helps landlords in neighborhoods such as Pieter van Leyden or Roomburg to maintain cost neutrality.
Procedure for Adjustment in Leiden
- Send timely written notification with a detailed calculation, preferably before 1 July for the new academic year.
- The tenant pays the difference; the landlord manages the deposit in a blocked account at a Leiden-based bank such as ING or Rabobank.
- Upon termination of the lease, often around September due to student influx, repayment of the adjusted amount must occur within 30 days.
Disputes and Limits in Leiden
The deposit in Leiden may never exceed twice the monthly rent (the statutory maximum under the Dutch Civil Code). In cases of exceedance, which is common in more expensive apartments near the university, the tenant may claim a reduction via the Rent Tribunal in The Hague, which strictly assesses local indexations. Residents of Leiden can also seek free advice from the Legal Counter on Breestraat.