The Government announced a few days ago that this would ensure that commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
What does this really mean for landlords and tenants and what other issues should those dealing with commercial premises be considering?
The Coronavirus Act does not require a landlord to forgo their rent entirely. It simply removes one of the landlord's remedies (repossession) if the rent is not paid. Where difficulties arise, most sensible landlords and tenants will be dealing with the March quarter rent by entering into a rent concession agreement (to agree to the rent being paid late or monthly or to it being reduced).
It is important to make sure that these agreements are correctly drafted so that the landlord does not lose remedies later on or inadvertently vary the lease. From a tenant's perspective you will want to make sure that the obligations are clear and that they support any application for a grant from the Government.
There are many things to think about at this difficult time but if you are involved with commercial property as a landlord or a tenant do remember to consider: