The coronavirus pandemic has significantly complicated the lives of many people. Landlords and tenants are also facing a difficult situation. Many questions and concerns arise regarding renting during this period. Does the coronavirus entitle either party to terminate a lease based on "force majeure"? Is it possible to reduce rent due to the coronavirus? We answer these and other questions in this article. Coronavirus and termination of the rental agreement A rented apartment, house, or single room for a fixed, long-term period meets basic needs – housing. Therefore, the coronavirus cannot change these existential needs or affect the ability to meet them. It's worth emphasizing that the coronavirus is not a reason for a landlord or tenant to terminate a fixed-term contract. For some tenants, the loss of a job or the opportunity to study entails the loss of this housing need, as, for example, universities were closed due to the pandemic, and they rented a room solely for the purpose of attending daily classes. Unfortunately, invoking "force majeure" or closed universities in such situations is unlikely to convince the landlord to waive the terms of the contract or withdraw from it without incurring the financial consequences stipulated in the contract. Coronavirus and rent reduction Due to the coronavirus, students and employees of many companies have lost the need to stay in their rented premises, most often traveling to their families. Does not using the lease entitle us to apply for a rent waiver or reduction? The coronavirus has made this issue often difficult for both parties. Landlords, citing the provisions of the lease, do not want to lose money they are rightfully entitled to; they also have their obligations. Tenants, on the other hand, perceive charging fees when the lease is not used for reasons beyond the tenant's control as a sign of selfishness and a lack of understanding. What can be done in this situation? Coronavirus – rent may be cheaper If the contract doesn't contain any relevant provisions to refer to, remember that it's always worth trying to invoke the principles of social coexistence when speaking with the landlord. What can we suggest to reach an agreement with the landlord?
- Declaring a lease extension – a landlord's declaration that they will extend the lease, for example, for another year in exchange for a rent reduction during the pandemic, will certainly be an added value. Many landlords value not having to spend time searching for a new tenant and not having to take the risk of renting to a new, unknown person. You can make such a declaration verbally or in writing.
- Requesting a deferral of payments – If you've lost your job due to the pandemic and are unable to cover your rent, it's worth having an honest discussion with your landlord. If your relationship has been excellent so far and you can document the loss of your source of income, you'll likely receive a reduction or deferral. However, remember that your landlord also has obligations (often including a mortgage on the apartment you're renting and other payments) and, despite their best efforts, they may not be able to reduce your rent.
If you reach an agreement that goes beyond the provisions of the contract, draw up an appropriate document, e.g. an annex to the lease agreement. Coronavirus – support for tenants and landlords The difficult situation related to the coronavirus can also be troublesome and stressful for landlords themselves. What should we do if our tenant has stopped paying rent on time, citing financial problems, for example, job loss? Negotiating with the tenant on their own is often fruitless. In such cases, it's worth enlisting the help of specialists who handle leases on a daily basis and rely on negotiations to resolve issues like these. The unusual situation caused by the coronavirus pandemic is causing a lot of confusion. Instead of stress and anxiety, it's worth working together to find a solution that won't be too burdensome for either party. If you have trouble reaching a consensus, it's worth taking advantage of the assistance offered by intermediaries for tenants and landlords.