- Is a lessee eligible for rent reduction due to a significant decline in footfall and consequently its turnover as a result of COVID-19?
- Is a lessee eligible to temporarily close its leased space - on its own initiative – and opt for rent reduction as a result of COVID-19?
- Is a lessee eligible for rent reduction in the event its leased space is closed following an order by the Government as a result of COVID-19?
- What kind of security is generally provided by a tenant in connection with a lease, a bank guarantee, a deposit or otherwise?
- Could a lessee consider other legal options, such as a lease termination, not paying rent at all or other options as a result of COVID-19?
jurisdiction
- Austria
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- Bulgaria
- China
- Colombia
- Croatia
- Czech Republic
- Denmark
- England and Wales
- Finland
- France
- Germany
- Hungary
- Ireland
- Italy
- Luxembourg
- Mexico
- Monaco
- Netherlands
- North Macedonia
-
Norway
- Peru
- Poland
- Portugal
- Romania
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- Scotland
- Serbia
- Slovakia
- Slovenia
- South Africa
- Spain
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- Turkey
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Updated on 20.03.2020.
1. Is a lessee eligible for rent reduction due to a significant decline in footfall and consequently its turnover as a result of COVID-19?
In principle not, but the COVID-19 situation might constitute legal grounds for a revision of the terms in the contract.
2. Is a lessee eligible to temporarily close its leased space - on its own initiative – and opt for rent reduction as a result of COVID-19?
The lessee may close the premises on its own initiative, if the lease agreement does not forbid it. The lessee will in principle not be able to demand a rent reduction upon closing on its own initiative but might have legal grounds for a revision of the terms in the lease due to the COVID-19 situation.
3. Is a lessee eligible for rent reduction in the event its leased space is closed following an order by the Government as a result of COVID-19?
Principally, a lessee is obliged to pay its rent even if its premises are closed by order from the authorities. But again, there might be legal grounds for a revision of the lease so the obligation to pay rent can be reduced or removed for a period.
4. What kind of security is generally provided by a tenant in connection with a lease, a bank guarantee, a deposit or otherwise?
Generally, security is most commonly provided in form of a bank guarantee, a deposit or a parent company guarantee.
5. Could a lessee consider other legal options, such as a lease termination, not paying rent at all or other options as a result of COVID-19?
There might be legal grounds for claiming reduced payments or termination.
