Prime Minister announces there will be a Covid-19 code of conduct for commercial tenants and landlords

Image Source: Commercial Real Estate

I just tuned into the Prime Minister’s latest announcement on Commercial Lease issues and have put together a brief summary:

* Industry Code coming – all parties to get together and understand each others needs. Next cabinet meeting Tuesday morning

* For effected businesses and on the job keeper package and turnover < $50m there will be a mandatory code of practice

* Both parties neg in good faith

* Proportionality principle – T/O effected by COVID-19 this will have to reduce rent by the amount that has been effected

* Leases cannot be terminated

* Councils and state govts going to provide further relief for landlords

* Banks need to be across these principles

* There will be a code of behaviour on how to negotiate and mediation will be available on the other side

Hope you find this useful!

#landlords #rent #leases #property #COVID-19 #proportionalityprinciple #rentalabatement #survival #otherside

 
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Phil Reichelt

Director

Phil has 25+ years experience advising and representing tenants on retail, office, industrial, large format retail, healthcare and other commercial property leasing.

A trusted veteran, Phil knows how to work negotiations in the tenant’s favour. He builds relationships directly with founders, business owners and senior executives to help optimise their business property situation.