Changes to Leasing laws during Covid 19

Sydney’s COVID-19 lockdown has been a big challenge for many Sydneysiders over the last few months. However, new rules surrounding tenancies are aiming to make lockdown slightly less confronting for both retail and commercial renters.

The new laws apply to all retail and commercial leases that were entered before 26 June 2021 and aim to provide protection and support for ‘impacted lessees.

To be considered an ‘impacted lessee’ tenant must:

·       Qualify for any of the 3 government protection measure

·       Have had a turnover of under $50million in the 2020-21 Financial Year

New laws have also been introduced to limit landlords taking action on the ‘prescribed breaches’ of tenants in this time. Before action can be taken, mediation with the Small Business Commissioner must be sought.

A tenant not paying rent or outgoings, or not trading is known as a ‘prescribed breaches’. However, these laws do not prevent ‘prescribed breaches’ from being actioned after the COVID-19 lockdown ends.

In contrast to the 2020 lockdown, tenants now have greater responsibility under the new laws. They are obliged to provide evidence to their landlords to prove that they are impacted lessees. The new laws also allow tenants and landlords to work together to find temporary solutions for their tenancy agreements.

Phone us today at Wainwright Legal if you need help with your lease