The Federal Government has now made the much anticipated announcement regarding rent relief for tenants of commercial leases.
The announcement is extensive but in short there is a mandatory code of conduct which will be made legally enforceable. Under the code small and medium sized businesses will be able to negotiate reduced rent, rent exemptions and rent deferrals.
The code also extends to landlords being barred from triggering rent reviews, terminating leases or drawing on a tenant’s security bond.
What does this mean for you as a landlord or a tenant? Most importantly it means if an agreement cannot be reached between a landlord and tenant then the code provides a structured approach to negotiation and mandatory mediation.
There is still a long way to go with this initiative and as developments occur, we will keep you updated.
In the meantime, we have one important message.
If you are negotiating reduced rental payments you must, document document document everything!!! Failing to document an arrangement will only lead to subsequent misunderstandings and disputes.
We are here to help, there are a lot of options for landlords and tenants under the code. We can help you achieve the best outcome for a renegotiated rent.
The above is only a summary of key points. The code is comprehensive.
A copy of the Code is here.