Commercial: Proposed legislation shoots tenants in foot

An immediate change to the Property Law Act will insert a clause into commercial leases requiring a “fair proportion” of rent to be paid where a tenant has been unable to fully conduct their business in their premises due to the Covid-19 restrictions.

The announcement was dropped on commercial landlords without any consultation or notice.

Kiwi businesses have been subsidised by the country’s biggest property owners to the tune of more than $320 million in rent relief since March.

The Property Council says under the new legislation vulnerable tenants who were previously given 100% rent relief could receive less as the landlord will have to provide “fairly” across all tenancies.