Commercial Rent Arrears

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Commercial Rent Arrears

During the pandemic there have been a significant number of restrictions imposed on landlords in respect of unpaid rent by commercial tenants.

The Commercial Rent (Coronavirus Bill) was introduced in parliament on 9 November 2021 and alongside this sits the new Code of Practice for Commercial Property Relationships Following COVID 19 Pandemic. It is envisaged this new legislation will be in force from 25 March 2022.

The new regime will have a significant impact on landlords and tenants alike where rent arrears have accrued during the pandemic in a period where tenants were forced to close their business. This will create a new “protected rent” where tenants and landlords will be faced with a statutory arbitration process to determine how much the tenant must repay. This will be a prescriptive process to be followed within strict timeframes.

It is critical that anyone affected by this new regime is aware of what amounts to a “protected rent” and what doesn’t and what obligations fall upon each party in those respective scenarios. It is important for those parties to understand what remedies may be available to them and how to navigate the arbitration process if that is what they are facing.

If you think your business may be impacted by this (as a landlord or tenant) please get in touch with your usual contact for further information.