Covid-19 Forfeiture Moratorium - what it means for Landlords and Tenants

Pursuant to section 82 of the Coronavirus Act 2020 ("the Act"), commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction. The Government stated on the 23rd of March 2020 that no business would be forced out of their premises if they miss a payment in the next three months. However what tenants get is only a grace period for three months they do not escape from the duty to pay rent. After the three months period a business could be forced out of their premises for missed rent payments.

Many tenants may be under the impression that they do not have to pay rent as a result of the Act. However, that is a misconception. Therefore, it is advisable for tenants to reach some form of arrangements for payment of rent with their landlord, such us payment by installment plan to avoid long term difficulties.