A mandatory code of conduct signed off by the National Cabinet yesterday will force commercial landlords to accept rent reductions in proportion to a tenant’s decline in turnover due to COVID-19. Landlords are required to offer tenants at least 50% of their rent relief as ‘waivers’ over the next few months and the remainder in deferrals. The ‘good-faith’ leasing principles should be negotiated individually between landlords and their tenants, and are designed to aid the management of cashflow for SME tenants and landlords on a proportionate basis, as a result of the economic impacts of COVID-19.
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April 9, 2020