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Covid and rent: a new law provision to help entrepreneurs

28 Jan 2022 Europe

A controversial law provision has been lately adopted to help entrepreneurs that could not use leased premises during the lockdown.
The provision – entered into force on July 25, 2021 with the conversion law of law-decree May 25, 2021, no. 73 – says that landlord and tenant must cooperate in good faith to recalculate the amount of the rent for 2021 for maximum 5 months. This applies only if certain prerequisites occur i.e.:

  • the tenant did not have right to any monetary help from the government in relation with the pandemic;
  • a loss of turn over a certain threshold because of lockdown;
  • the impossibility to carry out its business for more than 200 days because of lockdown.

The new provision appears to set forth a procedure aimed at helping those tenants that had suffered the most because of the lockdown. Although the language is obscure and convoluted still the provision apparently does not amend the civil code general provisions, which have been used by courts to decide litigation so far.