We know that during this stressful time that one of the biggest expenses will be your commercial rent. However, there are now a Code of Conduct as announced by Prime Minister Morrison
As at Friday 3rd April the State and Federal governments have agreed on a Code of Conduct for Commercial Rent agreements.
The main points of interest being
- This is for commercial tenants – eg office, retail and industrial spaces
- For tenants to be eligible
Business turnover is under $50 million
Business applies for JobKeeper allowance
- This code of conduct will apply during the same period as the JobKeeper allowance (possibly 6 months)
- Landlords will have to reduce leases in proportion to the reduction in the tenant’s business
- The waivers will have to account for at least 50 per cent of the reduction in business
- Rental deferrals must be spread over the time of the lease or 24 months whichever is greater
- Any reduction in Land tax, Council Rates or Insurance will be passed on to the tenant in the appropriate proportion of rent
- No interest, fees or other charges should be applied in respect to rent waivers or deferrals
- Landlords must not draw on a tent ant's security for non-payment of rent (cash bond or bank guarantee) during COVID-19 pandemic period
- Landlords agree to freeze on rent increases during COVID-19 pandemic period
- Landlords must not terminate leases due to non-payment during COVID-19 pandemic period
Examples on how the above will be applied practically include
We recommend you start talking to your Landlord now about this Code of Conduct if your business have been affected by COVID-19. Furthermore, we can assist you with JobKeeper allowance and Profit and Loss statements etc to provide to your Landlord to show loss of income and that your business is eligible for JobKeeper and rent waivers/deferrals
More information for Queensland residences can be found at https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf
Comentários