the state Duma in the main reading adopted a draft law regulating the relationship between tenants and landlords. The new amendments allowed the tenants to unilaterally terminate the contract with the owner of the premises, if he refused to reduce the rent. Concessions are introduced for small and medium-sized businesses, which operate in most affected by the coronavirus industries.
Earlier concessions on rents operated only for companies renting municipal or Federal property. Such companies are a minority. This bill will ease the burden on those who rent space from private owners. During a pandemic, companies are faced with a lack of profit: rent payments pulled them even lower.
the Amendments provide that concessions will affect small and medium-sized businesses. Tenants representing large businesses, mainly represented by foreign companies and their solvency decreased to a lesser extent.
SMEs will be able before October 1 to terminate lease agreement and to pay damages in form of lost profits. In this case the landlord will have the right not to return the security Deposit, if it was envisaged by the agreement.
Also, the bill had specified the list of objects of immovable property under this law. In particular, shopping complexes to arrive.
This bill will support tenants and to reduce the cost of rent for business, I’m sure the first Vice-President, head of financial markets Committee “Support of Russia” Pavel Sigal. “On lease payments accounts for a large share of the costs of the business. Along with easing the tax burden and preferential credit proposals, the decision that landlords unilaterally can cancel the lease and to indemnify, will help businesses to find more acceptable conditions for work. Now many landlords will lose customers and will exempt many facilities. Entrepreneurs have the chance to find square cheaper and on more favorable terms,” – said our interlocutor. According to Paul Segal, opening hours, April, entrepreneurs of the most affected areas (tourism, catering, fitness industry, beauty salons) complained that the owner of the premises demanded from them rent, though they were forbidden to work. “Probably, such landlords may lose some customers, especially because as a rule the fact of negotiations is fixed by means of calls or messages. Other landlords going forward: were charging a small amount which covers the cost of utilities, and the rent the landlord lowered or temporarily removed. Such owners of premises, tenants will remain” – concluded the expert.
the Third final reading the bill is scheduled for Friday, may 22.
