On 24 April 2020, new legislation came into effect in NSW aimed at protecting eligible tenants under retail and commercial leases.
Under the new Retail and Other Commercial Leases (COVID-19) Regulation 2020, between 24 April 2020 and 25 October 2020, if a tenant of a retail or commercial lease fails to pay rent, fails to pay outgoings (like rates, strata fees, etc), or is not open for business during the hours specified in the lease, the landlord cannot (among other things):
- evict the tenant;
- terminate the lease
- exercise a right of re-entry to the premises or lock the tenant out;
- require interest to be paid on any unpaid rent; or
- recover the tenant’s security bond.
To be protected under this temporary scheme, the tenant must qualify for the JobKeeper scheme and have a turnover of less than $50 million per year.
If you have any questions about how the Retail and Other Commercial Leases (COVID-19) Regulation 2020 applies to you, please call James Blaxland on (02) 6648 7487 who will readily provide advice on your specific circumstances.
This article is intended to be for information and educational purposes only and cannot be relied upon as legal advice. The information may not apply to your circumstances or to your particular situation. If you need specific advice or you have any questions, we welcome you to contact us directly.
