Industry employer group the Print & Visual Communication Association (PVCA) is offering its members a lease re-negotiation and insurance review package for $500 “to meet the unusual times we are operating in.”
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| Many association members are seeking help, says PVCA CEO Andrew Macaulay |
“The Prime Minister has made very strong statements that landlords and tenants need to work together to get through the next 6 months, and many members have contacted PVCA seeking assistance on lease re-negotiation and guidance on insurance review,” says PVCA CEO Andrew Macaulay.
“Without any definitive mandate from Government, it has been left up to the market to negotiate ‘amended terms’ for an intervening period. Accordingly, PVCA has negotiated an industry leasing and review package for members.
“If such negotiations are not properly considered and noted in light of the other clauses within the existing and respective lease documents and insurance policies, then it may give rise to void of cover under existing insurance policies or provide for significant disputes, misunderstandings and claims once we are all out of these Covid-19 restrictions.
“Commercial leases often contain clauses whereby either the landlord or the tenant will not be required to perform their obligations in a lease due to external circumstances. This could mean that tenants may be excused from having to pay rent depending on the wording used in a given lease."
Macaulay says that in some leases, this clause could also allow a tenant to walk away from their lease without financial penalty, leaving premises vacant for prolonged periods. It also may give rise to Landlords bringing leases to an end. "These are the very reasons why it may likely be prudent to being open to a renegotiation of some of the terms of a lease, but only for a defined period of time," he says.
“The important thing, is to ensure that such renegotiated terms are carefully considered, that insurance policies are factored into the equation and that all of it is properly drafted into a document for a defined period of time, subsequent to which all terms revert back to the way they were pre-crisis.
"For members of PVCA, its print and packaging industry legal services team at PTW Law is offering: A flat fee of $500 + GST to perform a lease review, provide initial advice on rights and obligations and:
For tenants – draft and provide initial letter outlining the proposed renegotiated terms sought from the Landlord having regard to the circumstances and the terms of the lease; or
For Landlords – draft and provide initial response letter to a tenant having regard to the terms of the lease, and the various stimulus packages being currently offered by Government.
“Please do not go it alone - it is our view that legal assistance in this regard is essential,” Macaulay says.
Business and Corporate Insurance Policies
“We are noticing an alarming rate of members who are either not insured for what they thought they were, or are in fact significantly underinsured. That is, now that such policies are called upon, it is becoming evident that people have had a false sense of protection, be it for a tenant not being able to cover rent, business interruption insurance, building insurance and many others.
“For PVCA Members, our print and packaging legal services team at PTW Law are offering a flat fee of $50 + GST to perform a review of your Insurance policies and provide an initial verbal advice on what you are covered for and what you are not.
"PVCA has negotiated these two highly discounted and flat rate fees for members. The actual value of the lease review and action is approximately $2000, delivered to PVCA members for $500 only. If both services are taken together, the business and corporate insurance review will be provided free of charge, thus delivering a further 10% benefit, on top of the 75% discount already delivered."
For details, please email info@pvca.org.au
Meanwhile, shopping centre owners and managers have been granted interim authorisation to discuss and implement rent relief measures for small to medium shopping centre tenants facing hardship because of the COVID-19 pandemic.
The ACCC has allowed shopping centre owners and managers to jointly develop a plan to help their small business tenants, including franchisees and licensees, which have a turnover of up to $50 million pa. The plan could include an offer to defer or reduce rents and other payments, waive interest payments and extend leases.
“Support for small and medium businesses in this difficult time will help the economy start up again when the pandemic has subsided,” said ACCC Chair Rod Sims.
