CVA are here to assist both Landlords and Tenants during this time to mitigate potential hardship and facilitate a balanced outcome for both parties.
We understand that many businesses are facing financial stress and likewise Landlords, who rely on rental to either pay their mortgages or it is their primary source of income.
It is important to understand that both Landlords and Tenants will need to participate with a collaborative approach that is reflective to the degree this situation has affected each party.
There are varying degrees of financial stress that this crisis has inflicted on businesses whilst some are prospering.
For those that are facing hardship, the government has put forward several measures to assist businesses and you should first review your position thoroughly by conducting the following procedures:
- Assess your personal and business position and contact your accountant or financial advisor to understand the Government subsidies that are available to you. There are tax refunds, grants, finance abatements, insurance premium abatements and low interest/interest free loans available to businesses. Most recently the government has announced an employment rebate of $1,500.00 per fortnight per employee.
- Contact your bank to seek mortgage relief and or obtaining additional funding to get through this period.
- The Government has placed a six-month moratorium on evictions which guarantees that you can’t be evicted from the premise during this time, however this doesn’t relieve you of your responsibilities under the lease.
- If the Landlord puts forward a relief package and you refuse to accept it, your obligations and responsibilities remain in full as per the original lease agreement.
Once you have assessed your position and put in place necessary steps to alleviate circumstantial pressures, you should then put forward your position in writing to your managing agent or landord for consideration in the aim to facilitate an outcome that is balanced and sustainable.
- Many banks are providing Landlords a six-month mortgage freeze on their loan repayments and we recommend that you investigate further if you are experiencing any financial difficulty. In the event you do freeze your repayments, note the interest will accrue and will be added to the total cost of the loan.
- Landlords need to ensure they are doing all that they can to support and assist their Tenants by sharing the current burden of diminishing business revenues and help them to continue to trade and occupy the premises.
This is a very complicated situation with an immensely diverse set of circumstances for every Tenant and Landlord. Each situation will need to be assessed individually on its own merit.
We encourage all parties to consider their respective positions and collaboratively facilitate an acceptable outcome for both parties.