Coronavirus in Queensland costing businesses 'Millions'
Tenants and landlords should seek legal advice on what these changes will mean for new or existing lease
Small Business and COVID 19
Queensland business has suffered enormously due to COVID-19.
However, Laws have been put in place to help the damage caused to your business during the 9 months of darkness.
Whether you’re a small plumbing business in a country town, a laundry or a cafe, your business is either supplying tourism directly, or supplying those business that deal directly with tourism.
You must understand the Laws that have been put in place for your protection in regard to your leasing arrangements, and what these Laws mean when it comes to negotiating Lease payments and the like.
Queensland has made arrangements for small and medium-size enterprise Commercial Leases affected by COVID-19.
If your business has been affected by coronavirus (COVID-19), support is available to help you manage your commercial lease and rental obligations.
Government and banking support provided for landlords is conditional upon them passing on the benefits of this support to their tenants, through rent reductions or relaxing of tenants' obligations.
Under the Emergency Regulation put in place by the Queensland Government, the Lessor cannot take a prescribed action against a Lessee with an affected lease for not paying rent.
Click here for further information and the Emergency Regulation 2020
Rental Reduction
Reduction in rent and any conditions relating to these reductions may be given effect by a variation to the Lease; or another agreement between the parties that gives effect to the matters agreed to which stem from negotiations.
The Emergency Regulation requires any portion, of an offer, of rent reduction, in relation to the extension period, to be in the form of a waiver of rent.
The Emergency Regulation requires that the Lessee and Lessor must cooperate and act responsibly and in good faith to mitigate the impact of the COVID-19 emergency.
The Emergency Regulation defines a prescribed action, as an action under a Lease or another Agreement relating to leased premises, or the commencement of a proceeding in any Court or Tribunal, for any of the following in relation to the Lease or other Agreement:
Tenants and Landlords should seek legal advice on what these changes and the new protections which have been put in place will mean for new or existing Leases and how the Emergency Regulation will impact their individual rights and obligations under the Act.
Contact Emanate if you would like a clearer understanding of your rights and what these Emergency Laws mean for your business.
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