The recent introduction of the Commercial Tenancy Relief Scheme Regulations 2021 which includes a period of rent relief protection for tenants from 28 July 2021 until 15 January 2022 (Protection Period) also includes mandatory timelines which both commercial tenants and landlords should be aware of.
What are the timelines?
If you are an eligible tenant, you must make a request to the landlord under regulation 27 for rent relief on or prior to 30 September 2021 in order to obtain relief during the Protection Period from 28 July 2021. This pending deadline is important as the information required is comprehensive and must be submitted in two parts on or prior to this date.
Part one requires the tenant to provide a written statement to the landlord, including but not limited to, identifying its eligibility and confirming that is has satisfied the decline in turnover test. Part two requires the tenant to provide a statutory declaration to the landlord which states that the information provided is true to the best of the tenant’s knowledge along with its supporting documentation.
What are the consequences if the timelines are not met?
A tenant has 14 days from the date it has submitted its written request to comply with part two of the regulations. To qualify for rent relief from 28 July 2021 both parts must be submitted on or prior to 30 September 2021.
If a tenant does not submit both parts one and two by 30 September 2021, any request for rent relief lapses and the tenant will need to start over (noting that the tenant can only provide up to three requests for rent relief). Ultimately, this will mean that the tenant will not be eligible for relief for the period from 28 July 2021 (subject to any mandatory reassessment of the rent relief agreement). Instead, the rent relief will then apply only from the date that a compliant (both parts one and two) rent relief request is made through to the end of the Protection Period.
If you have not already done so, this is a timely reminder for both tenants and landlords of the rent relief requirements as we approach the 30 September deadline.