As you are all aware, we are all anxiously awaiting the announcement of the Government’s rent relief package which is expected as part of the third stimulus package, as a result of the COVID-19 crisis.
We understand that tenants are now coming forward requesting rental relief in the form of reduced rental and/or no rental for a certain period of time due to the economic crises we are currently facing. At present it is too early to know how best to fix the situation until we have a better idea of how long this crisis will last and what other relief will be forthcoming. We do suggest that where assistance is given, it is given on a case by case basis for now.
It is imperative for all Landlords and Tenants to support each other as best they can in this crisis. However, any discussions on rent abatement, short-term agreements to defer some rental and any negotiations be put on hold until we know the full extent of the Government and financial institution relief package which should roll out in the next few days and weeks. Landlords and Tenants will then be able to make an informed decision and enter into negotiations which will benefit both the Landlord and the Tenant for the foreseeable future.
It is important to remember that where the tenants have been in substantial arrears prior to the onset of the COVID-19 pandemic, those rental arrears would not form part of any relief provided but would remain in place.
Further, it is important to note that where an agreement for rental reduction or rental abatement is being offered, you might also consider reaching an agreement with your current tenants to extend the lease term and exercise options early. Any variations to Leases or agreements reached should be documented by way of the appropriate Deeds to safeguard both Landlords and Tenants.
Both Simon and his Commercial/Property Team are here to help guide you step by step through this trying time and we will be sending further emails to you explaining the options and obligations for both Landlords and Tenants once we are in receipt of the full information from the Government in the coming days/weeks.
In the meantime, please do not hesitate to email or phone either Simon or Lisa with any queries or concerns you may have.
Stay safe!!