COVID-19 changes to commercial and retail leases

WHO SHOULD READ THIS

• Landlords and tenants of commercial or retail properties in Australia. Particularly those who are about to negotiate upcoming rental payments or take action for a lease default.

THINGS YOU NEED TO KNOW

• The National Cabinet have agreed on a national code of conduct to regulate commercial leases during the COVID-19 pandemic 'emergency period'.
• The States and Territories are expected to implement legislation and regulations to enact the principles of the Code shortly.

WHAT YOU NEED TO DO

• We recommend both landlords and tenants take proactive steps and develop action plans now.
• If you are a landlord, know your finances well. You will need to make concessions and have a good understanding of how much relief you can provide. Ask to see what mitigation strategies the tenant has pursued before you grant the rent relief. Confirm the tenant has applied for the JobKeeper program and ask to see their turnover records to ascertain