Commercial tenants are mistaken as to rent relief under COVID law changes

//Commercial tenants are mistaken as to rent relief under COVID law changes

Commercial tenants are mistaken as to rent relief under COVID law changes

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We recently had a situation where a commercial tenant was demanding a 100% rent waiver based on their reduction in turnover.

This was instead of the more common 50% rent waiver and 50% rent deferral based on their reduction in turnover. No grounds exist to say that the tenant should receive more than a 50% rent waiver.

Some tenants could be exploiting the COVID situation to extract greater rent relief from landlords than they’re entitled to.

In this case, the landlord had already agreed to provide the tenant with a three-month 100% rent waiver at the start of COVID (before the COVID law changes were passed).

The subsequent COVID law changes did not require a 100% rent waiver, but by that stage, the landlord could not renege on the agreement.

So the tenant received at least an additional 50% rent waiver for three months they were not entitled to under the COVID law changes. Now they wanted a bigger discount!

Sometimes, when you give people an inch, they want to take a mile.

While you may not be able to undo a previous agreement you’ve made with a tenant, we can help ensure that you are well-informed for the next time.

Contact us on 0408 954 570 or at tcockman@justicelegal.com.au.

Keep an eye out for further articles. Please note that this article does not contain legal advice. Please obtain independent legal advice to address your specific situation.

2020-10-30T17:58:09+08:00

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