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What rent reductions must property owners provide?
Link directly to What rent reductions must property owners provide?
Under the Regulation, property owners must renegotiate rent with eligible tenants in good faith having regard to the leasing principles in the Code of Conduct and the economic impact of the COVID-19 pandemic.
Under the leasing principles, property owners are required to reduce rent in proportion to the tenant’s decline in turnover. This means if a tenant has experienced a 40 per cent decline in turnover due to COVID-19, then the property owner must provide a 40 per cent reduction in rent.
As a default position, at least 50 per cent of any rent relief must be in the form of a rent waiver with the remainder a rent deferral. Any deferred rent must be paid back over the balance of the lease
or for a period of no less than 24 months, whichever is greater.
When do these rules apply from? How long will they last, and when will they be reviewed?
Link directly to When do these rules apply from? How long will they last, and when will they be reviewed?
The new rules apply from 13 August 2021. Tenants in financial distress and their property owners should start the process of negotiating rent relief agreements as soon as possible.
Support measures will be reviewed regularly as the COVID-19 pandemic has created a rapidly changing environment, and we must ensure the rules continue to be appropriate.
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