As promised in the Programme for Government, the Department of Business, Enterprise and Innovation has published a Code of Conduct between Landlords and Tenants for Commercial Rents (the “Code”). You can access the full text here.
The Code has been developed based on examples from other jurisdictions. Input was also sought from other Departments, State agencies and key stakeholders. The aim of the Code is to facilitate discussions between Landlords and Tenants impacted by Covid-19. The Department has clearly stated that this Code should not be seen in isolation and is part of the suite of measures the Government has put in place to assist businesses affected by the current crisis.
The Code acknowledges the fact that Landlords and Tenants have a common interest in working together to enable businesses to keep operating. It is based on the understanding that the parties will act in good faith and in an honest and transparent manner with each other. It encourages Tenants who are looking for assistance to be clear as to why it is needed. In return, it encourages Landlords to provide assistance to Tenants where they can. It also acknowledges the fact that in certain cases, Landlords may be unable to do so. For now, it is intended that the Code will remain in place until 31st July 2021. However, this is under review and the Code may well be extended or replaced.
It is too soon to know whether or not the Code will impact on the behaviour of Landlords and Tenants who have been unable to reach agreement to date on rents due during the current crisis. However, it does clearly state the factors which both parties should take in to consideration when asking for or considering a request for assistance. This is useful guidance for both Landlords and Tenants, whether they are at the beginning of discussions or further along in the process.Back to Full News
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About the Authors
Jackie is Head of the Property team at Hayes solicitors. She is a highly experienced adviser to clients in the banking, public and retail sectors on all aspects of the sale, purchase, leasing, development and financing of properties. She has extensive experience of advising landlords and tenants in insolvency situations and has advised in recent high profile examinerships.
Philip is a Solicitor in the Property team at Hayes Solicitors. He has a range of experience acting for clients in varied transactions including the purchase, sale, mortgaging and refinancing of both residential and commercial premises.