Restrictions and shutdowns imposed by the authorities to check the spread of Coronavirus pandemic have created financial problems for tenants running business in commercial premises. These business owners are facing problems in meeting their rental obligations. Realising their difficulties, government has announced relief measures for commercial premises tenants.
Covid-19 Emergency Response Act 2020
In response to the relief measures announced by the federal government, the Queensland government has introduced legislation to provide relief to commercial tenants. Called Covid-19 Emergency Response Act 2020, this legislation provides relief to commercial property tenants if their businesses are badly impacted by Coronavirus. They can negotiate with landlords for rent relief and also get professional advice to pursue viable business options based upon the situation of their businesses. The program also has a provision of dispute resolution between the tenant and his landlord if the matter is taken to Queensland Small Business Commissioner.
Hold on evictions and code of conduct for commercial tenants
Government has announced a hold on evictions for tenants who are unable to pay their rent because of the negative effects of Covid-19 pandemic. It has also announced a mandatory code of conduct outlining a set of good faith leasing principles for commercial tenancies. This code also mentions rent reduction that is in accordance to the decline in turnover experienced by the business of the tenant. Rent reduction helps commercial tenants as their burden is shared by their landlords.
Commercial Tenancy Relief Scheme
The government of Victoria has introduced Commercial Tenancy Relief Scheme in response to Coronavirus pandemic. This Act provides relief to not just commercial property tenants but also to landlords facing financial hardships because of Covid-19. The scheme has been extended till 31st of December 2020. Tenants occupying commercial properties can negotiate with their landlords and secure relief agreements under this scheme in the timeframe of 29 September 2020 to 31 December 2020.
It has been mentioned in this Act that commercial landlords will have to agree to rent reduction in accordance with the decrease in turnover experienced by the tenant on account of Covid-19 pandemic. There is a moratorium on evictions and freeze on rent increases under this scheme. There is also a rent waiver or deferral program based upon the decline in annual turnover experienced by the tenant.
Commercial tenancies: Covid-19 response
Commercial Tenancies Covid-19 Response Act 2020 of the government of Western Australia extends the emergency period until 28th of Match, 2021. Under this act, there is a moratorium on evictions, WA Code of Conduct, and freeze on rent increases. Protection for commercial property tenants will apply to those tenants who have experienced severe negative impact of Covid-19 pandemic and are unable to meet their rental obligations. You can seek relief and protection under this act of the government of Western Australia if you are experiencing financial hardships and not able to pay the rent on account of Covid-19 restrictions.
Please feel free to contact one of our representatives at the number mentioned below if you have any questions or need help in seeking relief in rent because of Coronavirus induced losses.
