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