Grace is the owner of a restaurant run by Luca. Luca had to close the restaurant in March and April during the reaction period. When Luca closed, he paid no rent for April and reopened the restaurant in May for the takeaway service. Luca misunderstood the Prime Minister`s announcement on commercial rent facilitation and believes he is automatically entitled to a 50% discount on rent. He does not realize that rent relief is a negotiated agreement between the landlord and the tenant. Luca told Grace that he only had to pay 50% rent by the end of September. The by-law sets out the procedure for tenants and landlords to negotiate rent and other specified conditions of a affected tenancy agreement during the reaction period or extension period. During the negotiations, both sides must cooperate and act reasonably and in good faith in order to make real efforts to reach an agreement. Landlords can use a wide variety of strategies to provide assistance to tenants. The most common ones are explained below. There are 5 phases that tenants and landlords should follow when negotiating the lease brake. More up-to-date information on rent reduction applications can be found under Guidance for Rent Relief Requests and Other Commercial Real Estate Tenant /Landlord Issues.
With a budgeting tool like the Moneysmart budget planner, you can create affordable rent. The guide is that paying more than 30% of your pre-tax (gross) income in rental fees is considered an advantageous rent. The contract is leased only, you still have all your other rights under your lease. 5. Confidentiality provision – The landlord may include in the rent relief document a provision prohibiting the tenant from discussing with other tenants about the property or in the market area the terms of their agreement with the lessor. While it is difficult to impose and/or prove offences, it is worth asking for and trying to enforce them. A lessor cannot sue a tenant with a affected lease because he or she rents or does not pay or is not open to trade during the response period or extension period. Under the regulations, a lessor cannot take legal action against a tenant with a affected tenancy agreement who does not pay rent or expenses or is not open to negotiation during the reaction or extension period. It also means taking such measures after either period.
This does not mean that a tenant does not have to pay or honour their tenancy agreement. The conversion of credit. Instead of reducing the rent owed, a landlord may agree to turn the outstanding rent into a credit to be paid over time. However, the tenant would continue to pay the current rent. The loan is then proven by a change of contract that has fallen behind in the lease. Grace calls Luca to discuss the rent and refers it to the Small Business Commissioner`s website and discusses the five stages of the tenant facilitation negotiations as part of the settlement. In accordance with Phase 2, Grace asks Luca`s to see the BAS for the months during which it aims to facilitate tenants in 2020, compared to the same periods in 2019, so that it can see the share of the decline in Luca`s turnover. Luca refuses to disclose this information. He insists (wrongly) that he is entitled to a 50% discount on rents by Christmas and tells Grace that there is nothing she can do about it.
When you receive a request to negotiate by your tenant or landlord, you must share information that is true, accurate, correct and not misleading. The information must also be sufficient to enable all parties to negotiate fairly and transparently. The proposal aims to facilitate flexible agreements between landlords and tenants in order to defer full or partial payment of rents for a specified period of time. Please note that this model does not apply to tenants who receive subsidies to live in their unit, either through an income plan (IMR), or if the tenant receives a rent supplement such as bc Housing`s Rental Assistance Program (RAP) or Homelessness Assistance for