The article below provides a concise review of information in relation to the Relief for Commercial Tenants due to COVID-19.
Evictions will be put on hold over the next 6 months for commercial and residential tenants. A code of conduct applies to retail, office and industrial commercial tenancies between owners, operators, other landlords and tenants. The code applies to tenants that are:
a small to medium sized business with an annual turnover of up to $50 million
eligible for the JobKeeper Payment
Rent reductions will be based on the tenant’s decline in turnover to ensure the burden is shared between landlords and tenants.
Principals of the code include:
landlords must not terminate leases for non-payment of rent during the COVID-19 pandemic (or reasonable recovery period)
tenants must stay committed to their lease terms (subject to amendments)
landlords must offer reductions in rent (as waivers or deferrals) based on the tenant’s reduction in trade during COVID-19
benefits that owners get for their properties (e.g. reduced charges, land tax, deferred loan payments) should be passed on to the tenant (in the appropriate proportion)
Be sure to communicate with your landlord / tenant to ensure your personal situation is understood.
If you have any queries in relation to the information above, please do not hesitate to contact us.