Mandatory Rent Relief for Commercial and Retail Tenants
The State Government will re-introduce the Mandatory Code of Conduct for Commercial Leasing to mandate rent relief for eligible tenants impacted by COVID-19.
The National Cabinet’s Commercial Leasing Code of Conduct was reinstated by the NSW Government on 13 August 2021.
Under the code, eligible landlords are required to offer rent relief in proportion to their tenants’ decline in turnover. At least 50% must be waivered, and the balance deferred.
The Regulation applies to commercial and retail tenants with a turnover of up to $50 million who qualify for the COVID-19 Microbusiness grant, COVID-19 Business Grant or JobSaver Payment. It prohibits any landlord from evicting or locking out a tenant for lease breaches unless they have first renegotiated rent and attempted mediation.
A new $40 million Hardship Fund will also be established to provide a monthly grant of up to $3,000 for small commercial or retail landlords who provide rental waivers of at least the value of the grant and any land tax relief for which they are eligible.
Allan Hall can provide assistance to our clients as we have done with previous NSW grant programs. Call our team in Brookvale on 02 9981 2300.