Improvements to draft commercial leases regulations achieved
In concert with the Property Council, the Institute has been able to achieve improvements to the draft Retail Shop Leases and Other Commercial Leases (COVID-19 Emergency Response) Regulation 2020 to recognise the changing circumstances in commercial leasing.
The changes include:
- Requiring adequate information for rental negotiations
- Preserving the lessor’s right to prescribed action on a ground that is not related to the impacts of the COVID-19 emergency
- Permitting scheduled rent rises albeit these would not be paid until after the COVID-19 period
- The lessor may continue to hold any security deposit given to the lessor until the deferred rent has been paid
- Permitting later rent renegotiations as circumstances change.
The regulations were developed to implement the fair leasing principles reflected in the National Cabinet Mandatory Code of Conduct SME Commercial Leasing Principles During COVID-19, announced by the National Cabinet on 7 April 2020.
If you have any questions, please contact Policy Manager, Martin Zaltron via email@example.com or (07) 3229 1589.