SME Leasing Principles during COVID-19:
National Cabinet
Mandatory Code of Conduct
Issues
A large proportion of businesses have suffered substantial
downturns in business due to COVID-19.A number of business uses or
premises are required to be closed.Landlords rely on the rent being
paid for their livelihood. Tenants rely on the space being leased
as their place of business. The National Cabinet has just released
a mandatory code of conduct which is still to be implemented
through relevant State and Commonwealth laws.
Summary
If the Code of Conduct applies Landlords;mustoffer
Tenants a rent reduction. It can be by waiver (the Tenant does not
need to pay it in the future) or deferral (the Tenant has to pay it
in the future but over a term of not less than 24 months).
