Protection from eviction for commercial tenants
Businesses will struggle to pay their rents & rates – this will be a difficult time. The government states;
Commercial tenants who cannot pay their rent because of COVID-19 will be protected from eviction.
These measures will mean no business will automatically forfeit their lease and be forced out of their premises if they miss a payment up until 30 June.
There is the option for the government to extend this period if needed.
This is not a rental holiday. All commercial tenants will still be liable for the rent. Commercial tenants are protected from eviction if they are unable to pay rent.
This obviously presents a problem for the landlords & the expectation is that the banks & other lenders will be expected to be flexible to assist getting through this situation.
A similar view is being taken with residential properties where tenants evictions will not be possible due to non-payment of rent.
It is worth both landlords & tenants discussing options to try and work through this together to avoid as much disruption as is possible.
