Law and regulation of rental agreements in Ireland during Covid-19

Updated on 30.03.2020

No, not unless contractually agreed. However, please note that retail leases commonly include an element of turnover rent  with the amount payable determined by reference to receipts.

No, not unless contractually agreed. Most leases include a keep open covenant (retail leases) or a covenant not to leave premises unoccupied (office or other commercial premises) which must be adhered to unless there is an order from Government to close.

No not generally - unless there is a force majeure clause in the lease. Such clauses are rare in Ireland.

The most common form of security in office and commercial leases is a full performance, primary obligation guarantee from the lessee's parent company. Security deposits and bank guarantees are more common in retail leases but are sometimes also used in shorter term office and other commercial leases.

Rent must continue to be paid regardless of financial hardship, temporary or otherwise. No right of termination will arise unless there is a contractual break option included in the lease. Other options to pursue would be assignment or sub-letting (usually subject to lessor consent). There could also be an argument for frustration where neither party is able to perform their obligations under the lease, however, if the situation is temporary the argument of frustration will be difficult to uphold.