Real Estate

Commercial Tenants and Landlords: Navigating through the challenges of Covid-19

The closure of all but essential businesses will inevitably lead to commercial tenants being unable to pay their rent and seeking accommodations to be made by their landlord due to the unprecedented global health crisis.

In Brief

Commercial landlords must confront the reality that many tenants will simply be unable to pay their rent in the coming months due to the complete cessation of their business function.  Eviction is not a feasible solution as, in most instances, there is no realistic prospect of putting in place a new tenancy.  Even if a new tenancy were achieved, it would almost certainly be at a lower rent due to the decrease in market demand.

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Condo Associations Face New Collection Challenges

As if the coronavirus pandemic and resultant economic fallout are not enough, the Commonwealth’s efforts to protect consumers and their homes are imposing an additional, unintended burden on condominium associations. To assist residents who are facing severe hardship, the Massachusetts Attorney General on March 27, 2020 issued new regulations restricting consumer debt collections. Unfortunately, the regulations’ broad reach falls too on condominium associations, many of which are struggling with unanticipated costs dealing with the unprecedented challenges presented by the COVID-19 pandemic. As we turn a new month, and delinquencies increase and age, cash-flow planning requires understanding these restrictions.

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COVID-19: Pressede erhvervslejere skal betale husleje

Mens regeringen har lukket store dele af Danmark ned for at afbøde og forsinke smitten med Corona-virus, bløder store dele af dansk erhvervsliv. Samtidig med, at en lang række butikker, forretninger og centre skal holde lukket, er erhvervslejerne som udgangspunkt stadig forpligtede til at betale husleje. I denne artikel sætter vi fokus på risikofordelingen mellem udlejere og lejere ved myndighedsregulering, der påvirker brugen af erhvervslejemål. Read more…

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The economic impacts of COVID-19 have Condo Boards asking “Can we give unit owners a break on their common expenses?” Unit owners are required by section 84 of the Condominium Act, 1998 (the “Act“) to pay their common expenses. At the most basic level, a Condo needs enough money coming in to pay its utility bills (lights, heat, cooling, water) repair and maintain the common elements, and to pay its suppliers. Collecting common expenses, putting a portion into the reserve fund, and enforcing liens are duties of a Condo and its Board, required by the Act and a Condo’s Declaration and By-Laws. Read the full article.

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Debt relief provided to housing developers participating in federally-sponsored housing programs and/or having federally-backed mortgage loans can provide a roadmap for how private lenders, other developers, and their tenants may successfully navigate financial hardships in the wake of the COVID-19 pandemic.

On March 27, 2020, the House of Representatives unanimously approved, and the President ratified, the Senate’s Coronavirus Aid, Relief, and Economic Security Act, (CARES/H.R. 748) (the “CARES Act”). Read more…

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While society has suffered pandemics in the past, the severity of the COVID-19 pandemic, and the effects it will have on businesses and society in general, is unprecedented in modern times. Whether courts will interpret various landlord-tenant provisions discussed below as they have traditionally interpreted them remains to be seen. Governmental intervention will certainly be necessary to blunt the adverse effects of the COVID-19 pandemic on the economy and to sustain industries which are vital to the well-being of our society. Read more…

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Force majeure lease provisions before and after the coronavirus

A force majeure (or Act of God) clause in a lease limits or eliminates liability for “an event or effect that can be neither anticipated nor controlled.” Does the coronavirus trigger the force majeure clause in your lease, and thereby offer protection from liability to both landlords and tenants? READ MORE 

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COVID-19: Butikker skal holde lukket – men hvem bærer risikoen?

For at begrænse udbredelsen af COVID-19 præsenterede regeringen i sidste uge flere tiltag, der bl.a. indebærer, at en lang række butikker, forretninger og centre skal lukke. Det gælder f.eks. shoppingcentre, barer, restauranter og andre butikker og alle steder, hvor mennesker kommer i tæt kontakt med hinanden. Det er således en væsentlig del af erhvervslejemål i Danmark, som bliver berørt af indgrebene – men er det udlejer eller lejer, der bærer risikoen for regeringens indgreb? Og hvad betyder indgrebet for lejers og udlejers kontraktmæssige stilling? Bliv klogere på lovgivningen her. Read more…

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An Corona trifft weder den Vermieter noch den Mieter ein Verschulden. An gesetzlichen oder behördlichen Anordnungen in diesem Zusammenhang auch nicht. Liegt daher aus rechtlicher Sicht ein sogenannter „Zufall“ vor, woran sich für Vermieter und Mieter bestimmte Rechtsfolgen ableiten lassen? Nach der Rechtsprechung trägt der Vermieter das Risiko für alle auf Zufall beruhenden Umstände in seiner Sphäre, die den Ausfall oder eine wesentliche Einschränkung der Benutzung des Bestandobjekts zur Folge haben (zB Ausfall der Heizung aufgrund eines Gebrechens beim Gasversorger). Wenn dies vorliegt, dann hat der Mieter Anspruch auf Minderung des Mietzinses. Ist dagegen der Mieter aus einem Zufall in seiner Sphäre verhindert (zB aufgrund eines Unfalles), das Bestandobjekt zu gebrauchen, obwohl es benutzbar ist, so hat er den Mietzins dennoch zu bezahlen. in diesem Zusammenhang ist als „Zufall“ jeder Umstand anzusehen, der trotz gehöriger Sorgfalt nicht abwendbar, somit nicht einem der Vertragspartner als Verschulden anlastbar ist. Read more…

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COVID-19: casting a spotlight on Facilities Management outsourcing

At the time of writing, the UK is officially moving to the “delay” phase, with government advising that anyone with a new, continuous cough or a high temperature self-isolates for at least 7 days.

With the FM sector already facing some headwinds such as the fallout of Carillion and other high profile insolvencies, the prolonged uncertainty caused by Brexit, concerns that new immigration rules may lead to staff shortages, and the impact of IR35 on the contingent workforce, some of the main challenges and issues for the Facilities Management sector are summarised below: Read more…

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