Mandatory Code to Guide Commercial Tenants on Rent Relief
COVID-19 : SYDNEY, MELBOURNE, BRISBANE, ADELAIDE, CANBERRA, PERTH & REGIONAL AUSTRALIA
Summary of Key Points:
- The code applies to all tenancies that are suffering financial stress as a result of the COVID-19 pandemic as defined by their eligibility for the Commonwealth Government’s Job Keeper program, with an annual turnover of up to $50 million.
- Landlords must offer tenants proportionate reductions in rent payable in the form of waivers and deferrals based on the reduction in the tenant’s trade during the COVID-19 pandemic period and a subsequent reasonable recovery period, with waivers constituting a minimum of 50% of the reduction in rent payable.
- Payment of rent deferrals by the tenant must be completed over the balance of the lease term and for a period of no less than 24 months, whichever is the greater, unless otherwise agreed by the parties.
- Landlords agree to a freeze on rent increases for the duration of the COVID-19 pandemic.
- Landlords must not terminate leases due to non-payment of rent during the COVID-19 pandemic period.
- Tenants must remain committed to the terms of their lease.
- Landlords must not draw on a tenant’s security for the non-payment of rent.