Commercial and Residential Tenancies
Commercial and Residential Tenancies
On Sunday 29th of March, the Prime Minister announced a number of measures to assist both residential and commercial tenants affected by COVID-19. In addition to placing a moratorium on evictions, the government is encouraging tenants, landlords and banks to work together during these challanging times.
Residential Tenancies
For residential tenants suffering financial hardship as a result of the coronavirus, there will be a hold placed on evictions for the next six months under those rental arrangements.
Commercial Tenancies
In the instance that a landlords and tenants have not been significantly affected by COVID-19, it is expected that existing lease and rental agreements would remain unchanged.
For commercial tenants suffering financial hardship as a result of the coronavirus, there is a hold placed on evictions for the next six months under those rental arrangements.
Struggling commercial tenants, landlords and banks should work together to come up with an agreement with the goal of keeping businesses afloat. The expectation is that the cost of deferral of losses should be shared between landlords and tenants, with Commonwealth, State and Territory governments, local government and financial institutions to consider mechanisms to provide assistance.
Tenants will have the ability to terminate leases and have access to mediation or conciliation on the grounds of financial distress.
Commercial Landlords
Commercial property landlords adversely affected by COVID-19 can also apply for assistance from their bank as long as they agree not to terminate leases or evict current tenants for rent arrears for the period of the interest capitalisation.
This also has relevance to commerical tenancies between Self Managed Superannuation Funds leasing commercial property to related business entities. If this applies to you we encourage you to contact us for more information.
More information in relation to commercial tenancy arrangements is expected following a treasurer meeting scheduled for Friday 3rd of April.
