19 March 2020

COVID-19 and Lease Agreements

In this current (and hopefully short-lived) period of economic uncertainty it is important for tenants to realise that the obligation to pay rent under a lease is tantamount.

If any tenant is experiencing economic hardship, or expects to experience those troubles, it is important to engage in communication with your landlord.  Under a lease a tenant is obligated to make rent payments and cannot unilaterally decide to reduce or halt rent payments.  Speak with your landlord.  Openly discuss the issues that you have and raise the possibility of a rent reduction, a pause on rental increases or a cap on outgoings contributions.

It is important to remember that not all landlords are large multinational corporations.  Your landlord may be heavily geared with large mortgage payments to its bank.  A reduction in payments will also seriously impact on your landlord.

As Scott Morrison said “We will get through this together”.  Tenants should not bunker down but contact their landlords now.



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