COVID-19 Rent Negotiation Implications

The landlord and tenant relationship, as well as the negotiating positions of either, can often be tested by external factors, with the current pandemic being a prime example. It’s the best time to consult property lawyers. The measures executed to diminish the spread of COVID-19 virus have plunged the real estate sector into uncharted waters. Rentals have been impacted by the closure of restaurants, shops, bars, and other public establishments. Commercial properties are no exception due to the 'work from home' initiatives and curfews implemented. 

Tenants are going through significant changes in their job and salary status. As a result, landlords are being bombarded by requests and demands on rent relaxations, waivers, and discounts. This leads to questions like, ‘Do landlords have to postpone or decrease rental payments due to COVID-19?’. Considering the setbacks in business or employment, 'Can tenants terminate tenancy contracts immediately without penalty?' There are key legal considerations when it comes to amending lease arrangements. Any real estate lawyer will point out these policies: 

Can tenants apply force majeure to excuse them from paying rent? 

Tenants can refer to their lease for a force majeure clause. It stands for the proposition that the tenant’s obligations to pay rent under the contract can be excused when a “force majeure” makes such liability impossible, impracticable, or illegal. Force majeure is often thought of as an ‘act of God’, a natural occurrence like an earthquake or hurricane, or a particular circumstance beyond reasonable control.

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ARE YOU IN A LEGAL DISPUTE? OR WONDERING IF YOU HAVE GROUNDS TO FILE A LAWSUIT? 

Check out some informative articles that may help you:

• Renewing Tenancy Contract in Dubai
• Resolve Property Disputes in Dubai
• Real Estate Agent vs Real Estate Lawyer
• Is it advisable to engage your lawyer when selling a property?
• Thinking of buying an off-plan property? Get a lawyer

Motei and Associates has the finest real estate lawyers Dubai has seen, offering disputes resolution and general corporate, commercial transactional services. Give them a call today at +971 4 435 5959.