The Government intervenes in the rental market to help stores, bars and restaurants.

From today will apply in Catalonia the “Decree / Law 34/2020 of October 20, urgent measures to support economic activity in business premises leased“, which aims to help trade and hospitality to alleviate the economic impact of the restrictions by the crisis of coronavirus, whether partial or total, which came into force last Friday.

The aim of the standard is to prevent the closure of companies and the destruction of jobs. Therefore, it proposes an equal and fair distribution of the negative consequences of the prohibitions, suspensions and restrictions imposed.

The decree proposes as first option the negotiation between the owners of the businesses and the owners of the properties, to establish, by mutual agreement, a reduction of the amount of the monthly payment.

In the event that there is no agreement, new rules are established:

Closed establishments: 50% discount

If the agreement between the parties is impossible, the new rule establishes that the amount of the rent for closed businesses will be automatically reduced to 50%, starting from the day the tenant has notified the will to negotiate.

This measure affects bars, restaurants, gyms, beauty centers, bingo halls, casinos, gambling halls and toy libraries.

Partial reduction

In partially restricted activities, if there is no agreement for temporary rent review, the fee reduction will also be 50% of the unused portion. In other words, if a business has the capacity limited to half, the owner must pay the full rent for half of that which can be used, but will only pay 50% of the restricted part for sanitary measures.

Among the businesses with the capacity or partially affected schedules are theaters, stores, 24-hour stores and hotels.

Exclusion of take-away products and home delivery

For the purposes of this standard, take-out and home delivery are not considered. For example, if this is the only service that a restaurant can offer, the decree law considers that the business is closed and that the reduction of the rental fee must be equally 50%.

Method of payment

The tenant may require the landlord to collect rent and other expenses due from guarantees in his possession, except for the mandatory legal deposit.

Free termination of the contract

If the Government’s restrictions are extended for more than three months, the tenant may terminate the contract without penalty, always with one month’s notice.