News
- June 2021
- April 2021
- March 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- May 2016
- April 2016
- February 2016
- January 2016
- November 2015
- October 2015
News
Commercial Landlords and Tenants: Renegotiating your lease in a pandemic
August 6th, 2020
At Miller Harris, we know that local businesses are feeling the impact of COVID-19. The Commonwealth government previously announced a “code of conduct” to allow business tenants to negotiate rent relief with their landlords during the pandemic. That code of conduct did not have any legal force, but after a considerable delay, the Queensland government passed regulations to put it into effect.
There are some myths going around about what rights tenants and landlords have in the pandemic. In particular, there is no automatic right to a 50% rent discount. Read on to find out how the system works.
If a tenant requests renegotiation of the rent or conditions under the lease, parties must enter into negotiations provided that:
- the tenant has an annual turnover of less than $50 million, or is not-for-profit; and
- the tenant is eligible for the JobKeeper scheme.
The landlord and tenant must share enough information with each other to enable them to negotiate in a fair and transparent way. During the negotiations, both the landlord and tenant must cooperate and act reasonably and in good faith. At the end of the negotiations, the landlord is obliged to make an offer to the tenant. If agreement cannot be reached, or a party does not negotiate, the matter can be referred to the Small Business Ombudsman.
For affected tenants:
- Start the renegotiation process.
- Do not simply stop paying your rent or expect your landlord to stop charging rent.
- Get your business records in order so that you can demonstrate the impact of the COVID-19 measures on your business.
For affected landlords:
- Do not increase the rent payable before 1 October 2020.
- Be cautious about taking action against a tenant for failure to pay rent during this period.
- Speak with your bank about what options are available if your tenants are unable to pay the full rent.
Finally, make sure that any agreement you reach is recording in writing and that changes to the lease are reflected in formal, enforceable documentation.
If you have any questions or concerns regarding your rights and obligations you should contact our experienced commercial and property law team as soon as possible on 4092 3555, or feel free to see us in our Mareeba office at 222 Byrnes Street, Mareeba.
More