The Department of Business, Enterprise and Innovation has published a voluntary Code of Conduct between Landlords and Tenants for Commercial Rents (the "Code"). The Code was written in consultation with Retail Excellence Ireland, Chambers Ireland and Irish Institutional Property (IIP) and will remain in place until 31 July 2021. You can access a copy of the Code here.
The Code calls on landlords and tenants alike to act in a fair and transparent manner when negotiating any variations to the terms of their commercial lease. It is acknowledged that the Code does not have any affect on the underlying legal relationship between the parties, however, it is hoped that the principles set out in the Code will be considered and, when coupled with the business supports already in place, will assist businesses to navigate the current crisis.
Some of the topics covered by the Code are also discussed in our podcasts We Talk Real Estate: Episode 4 - The End of the Affair (Part 1) available here and The End of the Affair (Part 2) coming soon.
The Code acknowledges the current landscape where firms are experiencing liquidity gaps and debt overhangs. It sets out that parties should act in good faith and in an honest and transparent manner. It lists some of the issues to consider when determining the impact of COVID-19 and public health restrictions on a business and the need for concession and also some suggested options for new arrangements.
