ScoMo has finally spoken on the issue of commercial tenancies.
We now know that a 6 month moratorium is to be placed on evictions.
But what about unpaid rent?
ScoMo has urged landlords and tenants to get together and come up with a solution which means that a landlords investment will be viable and a tenants business can resume when Australia comes out of ‘hibernation’.
He suggested that a tenant saddled with debt (in the nature of rent arrears) may not be able to re-open on the other side of covid-19 and hinted that the various ‘safety net’ packages which have been made available to businesses may not be available to those who don’t co-operate with their landlords/tenants.
So it’s going to be about communication and case by case arrangements, which work for all parties (including banks).
We are urging clients not to be too quick to lock in to new arrangements, but to start discussions about mutually viable futures.