Being a commercial property tenant or landlord in Spain during Covid-19 lockdown

covid-19 free legal guide Spain Lawyer

Commercial property tenants and landlords are facing serious problems during the corona virus crisis. A multitude of scenarios regarding rental payment have arisen due to the current situation. Commercial property landlords  are facing problems to get paid and probably put pressure on to their tenants who have not had any revenue for several weeks. Social distancing measures are in place for some time now and have been extended, businesses must survive but on the other side, rights of the owners must be preserved.

 

Owners might claim that if rent is not duly paid they may terminate the contract so they can let their properties again, however, tenants may claim that the State of Emergency declared by the Spanish Government compelled them to close their businesses and that therefore, it is legal to stop paying rent. How to deal with the rights and interests of each other?. Given the unprecedented nature of these circumstances, the best practical steps are that  tenants find a way to work with their landlords, and so the owners work through it with their tenants, and discuss options between each other such as rent relief, postponement or other measures. Whatever is the agreement reached between the parties during Covid 19-lockdown, this  must be signed by both as an Annex to the main contract. Every case is different and needs special study of their respective contract, circumstances and interests. It is strongly recommended that both commercial landlords and tenants also review their business insurance.

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