Commercial property Code of Practice template to assist rental and lease terms
An annex to the commercial property Code of Practice during COVID-19 has been issued for tenants and landlords to use in discussions about rent, rent arrears, and ongoing lease terms.
A template form was released yesterday, 6 April 2021, for commercial tenants and landlords to use during negotiations to encourage them to work together.
In June 2020, the UK Government published a Code of Practice to protect viable businesses that have been negatively impacted by the Coronavirus pandemic. It is designed to provide clarity for businesses when discussing rental payments and to encourage best practices so that every part of the chain is supported.
It applied across the UK and it has four principles:
- Transparency and collaboration
- A Unified approach
- Government support
- Acting reasonably and responsibly
The Code is voluntary because each client and business relationship will respond differently to the circumstances, and, importantly, the Code does not change the underlying legal relationship or lease contracts between a landlord and tenant.
It encourages tenants to continue to pay their rent in full if they are in a position to do so and advises that others should pay what they can, whilst acknowledging that landlords should provide support to businesses if they too are able to do so.
Commercial agents are encouraged to download the template form and share it with clients.
Kindly shared by NAEA Propertymark
Main photo courtesy of Pixabay