The pandemic impact is unprecedented in the depth and breadth of the impact on country and global economies.
The Code and the related messaging from Government emphasize the goal of business continuity, and the related need for acceptance of shared pain by tenant and landlord, evidenced by good faith negotiations and amended lease arrangements. The eligibility tied to the Jobkeeper Program relates to the mandatory aspects of the Code.
The Code’s intent and principles apply to all affected tenants and landlords. The status is that many landlords are refusing to participate in good faith negotiations or are slow to enter good faith negotiations with tenants that do not qualify as ‘eligible’ for the mandatory aspects of the Code. These responses are opposed to the intent and principles of the Code.
Tenants negatively impacted by the pandemic should pursue good faith negotiations framed by the Code’s intent and principles, regardless of eligibility to the mandatory aspects. It is essential that the tenant’s representations are substantiated. We advocate that these representations address the full impact of the crisis on the tenant and the tenancy, by providing evidence of current and future impact on revenue, utilization of the leased asset, and operating cost. The representations need to be supported by a process that facilitates good faith negotiations and agreed amendment to leasing arrangements.