The government has published its Code of Conduct to govern relations between business renters and landlords during the Covid crisis. 

The code has been agreed between landlords and business representatives for commercial renters and the state, and will apply until 31 July 2021. 

According to enterprise minister Leo Varadkar, the code sets out a structured approach for engagement between commercial landlords and tenants, based on their mutual interest in continuing to work together.

It asks commercial landlords to provide concessions where they can, and where this is not possible asks them to set out clearly the reasons for this. 

It lists some of the issues to consider when determining the impact of Covid-19 and the public health restrictions on a business and the need for concessions. Where a concession is being considered, the code provides some suggested options for new arrangements. It also suggests that tenants seeking new arrangements should be clear on why assistance is needed when seeking concessions from their landlord.

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Varadkar (pictured) said: “I know that some firms are concerned about how they are going to continue to pay the rent due for their business premises. Throughout this crisis, the government has been encouraging commercial tenants and landlords to engage with each other and have asked landlords to show forbearance in these extraordinary times.

“Nobody wants to see vacant premises in our towns and villages or our shopping centres. Landlords should be willing to do what they can to help their tenants to continue to operate rather than facing the risk of a vacant premises and inability to obtain new tenants. Equally, tenants should pay what they can and speak with their landlord when difficulties arise. The code sets out how both parties can work together to get through these uncertain times.”

Retail Excellence, which represents many commercial tenants, has given the code a “cautious welcome”, but says more needs to be done to avoid further job losses and store closures.

Managing director Duncan Graham said: “The code is a step in the right direction but we want landlords to work together with their tenants and find solutions to the problem of rent arrears in the retail industry, dating back to the lockdown.

“There have already been 90 high profile store closures this year including chains like Debenhams, Mothercare, Oasis and Warehouse, and it is highly unlikely these units will be relet any time soon. The code of conduct is a voluntary code and more needs to be done, including the introduction of an improved, fully independent arbitration service and a moratorium on evictions in the commercial property sector, similar to the residential sector.”

The code of conduct can be downloaded here.