Under the recently enacted Commercial Tenancy Relief Scheme Regulations 2021 tenants had the ability to apply for rent relief protection if their business had suffered during the pandemic. This scheme was introduced to provide support to businesses with annual turnover of less than $50 million that have suffered a decline in turnover of at least 30% due to COVID-19. However, the Tenancy Relief Scheme comes to an end this month, with 15 January 2022 being the last date.
What does this mean for small business?
Whilst landlords are not mandatorily required to provide relief, we ask that tenants and landlord remain in good speaking terms and try and reach fair and just agreements in relation to rent and outgoings for the next few months with many businesses suffering due to shortages in staff and isolation requirements.
Support is still available to small business
Although the scheme is coming to an end, due to the rise in COVID numbers, business who are under financial strain will still be able to access support through various means, including the free resources being provided by the Victorian Small Business Commission’s (VSBC).
Our lawyers can also help you in facilitating discussions with your landlord or your tenant to ensure both parties enter into negotiations in good faith.
What does ‘in good faith’ means under the scheme
Once Commercial Tenancy Scheme ends on 15 January 2022, where tenants are still under financial pressure, they have an option of trying to negotiate a new relief agreement with their landlord in good faith.
Good faith means:
- Communicating with each other honestly and fairly with real want to reach an agreement
- Being open and transparent
- Providing accurate information which can support negotiations.
Still Struggling?
If you are still unable to negotiate the terms and conditions of your lease agreement, our lawyers can assist you in this difficult and stressful process. Our dedicated team of lawyers can guide you in any disputes related to your tenancy agreements. You can contact us by calling on (03) 9696 0883 or emailing at [email protected]
