While some commercial tenancy agreements may clearly justify a tenant suspending the payment of rent and/or interrupting its normal operation, the majority is written in favour of the landlord, which means that these rights are either difficult to interpret or non-existent. Tenants who cause disruption as a result of COVID-19 should review all available state aid to support rents. Not to be overlooked, insurance policies can help cover losses resulting from service interruptions. Although guidelines are generally limited to interruptions of property damage, some guidelines may cover government-ordered closures. In a spirit of cooperation, landlords should review their own insurance policies to determine if they are insured for rent losses; this can reduce the disproportionate burden on tenants. This page answers questions that landlords and tenants may have during COVID-19. The spread of the COVID 19 virus is a persistent global crisis. On March 23, 2020, the President announced a 21-day national blockade, effective midnight on March 26, 2020 until midnight on April 16, 2020. It was extended for an additional 14 days on 9 April 2020. It is not certain whether further extensions will be ordered or, if not, how life could slowly return to “normal”.
As a direct result of the blockage at the federal level, all doors for all businesses (except those providing essential services) were closed from March 27, 2020 to April 30, 2020 at least. What does this mean for monthly rents? Are tenants entitled to the rent rebate during this period and, if so, to what extent? This is an issue that many tenants and landlords bring to mind. Given the unprecedented pandemic of COVID 19, which is infiltrating the economy and leaving a significantly reduced global liquidity state, is it possible to ask whether leases can be implemented when all other transactions are at a standstill? The argument is based on the reciprocity of a lease – the lessor is required to grant a tenant the use and enjoyment of the premises for which the tenant`s use and enjoyment pay rent.