Second Submission on Commercial Leasing

The Property Council has provided a second submission to the Department of Justice and the Attorney-General on Queensland’s implementation of the National Cabinet’s commercial leasing Code of Conduct.

The submission follows Queensland Parliament’s decision to pass the COVID-19 Emergency Response Act 2020 and implement the National Cabinet’s Code. The Property Council previously provided the Department with an initial submission on the Code’s enactment in Queensland. This second submission provides supplementary commentary on the eventual implementation of the regulation.

The Property Council have been committed to advocating for a balanced approach in governing commercial tenancies since the Code’s announcement. Many landlords are often ‘mum and dad investors’ who are struggling throughout this difficult period. For the final regulation to be balanced and fair it should:

• Only apply to tenants who are suffering or have suffered excessive hardship due to COVID-19
• Require tenants to undertake all reasonable steps to access income support and Government assistance (in the case of non-residential leases this should include an obligation to pursue revenue through continuing to trade, where possible.)
• Establishes clear obligations on tenants to substantiate their claims for relief in order to be eligible for support, and to report any change in circumstances.
• Provide penalties for tenants who provide false or misleading information about COVID-19 related hardship.
• Require tenants to continue to meet the conditions of the lease,
• Strike an appropriate balance between the rights of the lessee and lessor,
• Provide protections for, and preserve the rights of, landlords in instances where a tenant does not meet obligations under the regulation.
• Provide for consideration of a property owner’s hardship in determining an equitable outcome between the owner and tenant.

The Property Council also reiterates that tenants and landlords should be able to arrive on and maintain mutually agreeable arrangements outside of the regulation. This includes being able to ‘opt-out” of the regulation or continue with prior agreements made before the regulation’s commencement.

The Property Council is committed to continuing to work with the State Government on the implementation of the Code in Queensland.

To view the Property Council’s full submission, please click the link below.