Retail And Other Commercial Leases Covid-19 Regulations

Covid 19 Regulations for leases in NSW

  • Applies to tenants who qualify for the Jobkeeper scheme and haveturnover of less than $50M
  • Landlords must not terminate Leases or claim under any guarantee, security
  • bond or claim damages for failure to pay rent, outgoings or failure to trade
  • Landlords must not increase the rent (except for turnover rent provisions)
  • Any reduction in statutory outgoings must be passed on to the tenant.
  • Parties must renegotiate the rent and other terms in good faith having regard to the economic impact of Covid 19 and the leasing principles in the National Cabinet Mandatory Code of Conduct - in particular - leasing principle 3 which requires landlords to offer rent reductions (waivers or deferrals) in proportion to the tenant's reduction in turnover.
  • Commences 24 April 2020
  • Applies for 6 months
  • Doesn't apply to leases entered into after 24 April 2020 (but does apply to options contained in existing leases)
  • Internet sales included in determining whether turnover is under $50M;
  • For commercial tenants (not under the Retail Leases Act), lease cannot be terminated or other rights exercised unless the Small Business Commissioner certifies mediation failed.



Testimonials

“Dear Anthony, Just a quick note to say thank you for the way you handled our recent lease dispute. From our first meeting I was impressed at your quick grasp of the basic issues and by the professional way in which you planned our responses. Your sympathetic and positive attitude throughout the matter was much appreciated as were your regular calls to keep us informed. The positive outcome achieved was a credit to you and your helpful staff and I would recommend your firm most highly to anyone who finds themselves in a similar situation.”

Mr Richard Barouch

Fast Enterprises Pty Ltd

24 September 2010

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