The right to renewal is one of the cornerstones of commercial tenant protection. It guarantees the stability needed to operate a business.
Principles:
- The tenant is entitled to 3 renewals of 9 years each
- This right is mandatory: any clause waiving it is void
- Renewal creates a new lease (new conditions may apply)
- The conditions of the new lease are negotiable between the parties
Requirements to benefit from renewal:
- Having operated the business throughout the lease or at least during the last 3 years
- Not having committed a serious breach of the lease obligations
- Filing the request within the strict time frame (18th to 15th month before expiry)
- The lease must relate to premises used for retail or artisan purposes
Deadline: between the 18th and 15th month before the lease expires
Form: registered letter or bailiff’s writ
Mandatory content of the request:
- The intention to renew the lease
- The proposed conditions for the new lease (rent, duration)
- The commercial activity to be carried on
- A statement that the landlord has 3 months to respond
- A statement that silence constitutes acceptance
Example: lease expiring on 31 December 2027
- Request between 1 July 2026 and 30 September 2026
- Landlord’s response: before 31 December 2026 (3 months)
Landlord’s response (within 3 months):
| Response | Consequence |
|---|---|
| Silence | Acceptance on the proposed terms |
| Acceptance | New lease on agreed terms |
| Counter-proposal | Negotiation, then justice of the peace if no agreement |
| Reasoned refusal | Depending on the grounds, compensation may be owed |
The landlord may only refuse renewal on exhaustive statutory grounds:
| Grounds | Compensation due | Condition |
|---|---|---|
| Personal occupation | 1 year’s rent | Occupation within 6 months, minimum 2-year duration |
| Reconstruction/renovation | 1-3 years’ rent | Works making continued business impossible |
| Serious breach by the tenant | None | Serious failures in lease obligations |
| Third-party offer | None | Offer at least 25% higher + bonus |
| No stated grounds | 3 years’ rent | Discretionary refusal |
Personal occupation: the landlord or a first-degree relative (parents, children) must actually operate a business on the premises. Mere residential use is not sufficient.
Reconstruction: the works must be extensive enough to make continued business occupation impossible. Simple renovation is not sufficient.
Eviction compensation is designed to offset the loss of goodwill tied to the location:
Amount: set by the justice of the peace, between 1 and 3 years’ rent depending on:
- The tenant’s length of occupation
- The importance of the location-based clientele
- The investments made (fit-out works, improvements)
- Relocation costs
Factors taken into account:
- Loss of clientele (turnover)
- Moving costs
- Fit-out costs for the new premises
- Loss of brand recognition linked to the address
Cases where no compensation is owed:
- Refusal on the grounds of serious breach by the tenant
- The tenant failed to request renewal within the prescribed time frame
- A third-party offer was accepted (the new tenant pays compensation to the outgoing tenant)
Advice: if you are a tenant and the landlord refuses your renewal, consult a specialist lawyer. Eviction compensation can represent very substantial amounts.