Commercial Rent Relief Agreement (Victoria) Template

A formal binding agreement, capturing a rent reduction deal between a landlord and tenant under the COVID-19 rent relief scheme (Vic).

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How it works

Type in your details

Type in your details

Download the template and enter your lease details and rent reduction deal.

1
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Print the document ready for signing.

Sign the document

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Then landlord and tenant sign the document to vary the usual terms of the Lease for commercial premises.

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WHY LEGAL ZEBRA

Landlords! Write a Rent relief Agreement without lawyer

This Legal Zebra Template helps you put your Commercial Rent Relief Agreement in black & white instantly. This will save you at least $1,200 in lawyer's fees.

Easy to use

Easy to Use

There's no legal mumbo jumbo... The document is in simple language that both the landlord and the tenant will easily understand. The Template guides you step-by-step through the process of making a legally binding Commercial Rent Relief Agreement that you can enforce in a Victorian Court or VCAT.

Legally Binding

Legally Binding

Because the Template helps you write a legally binding Agreement yourself, unless the rent relief arrangements between the landlord and tenant are highly complex, you won't need to see a lawyer.

Unlimited Edits

Unlimited Edits

Want to change something in the document? No problem. You can make as many changes as you need. The Microsoft Word version is fully editable so you can amend the Commercial Rent Relief Agreement (Victoria) to your heart's content.

Latest update

Recent Update

The template we provide is regularly updated and effective under Victorian law. The document was prepared for 2020/2021 rent relief. You may need to make some changes to ensure it covers the requirements of the 2022 Commercial Tenancy Relief Scheme.

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Who is this rent relief template for?

Template Agreement to reduce rent on commercial premises in victoria

We have agreed with the tenant to give them a reduction on their rent for a few months so they can get through the COVID-19 pandemic and hopefully keep trading. We are waiving part of the rent and letting the tenant defer part of the rent. <br><br>

The tenant rents a shop front in Melbourne for a hair dressing business so they have been suffering from pandemic lockdowns.<br><br>

We need to record the arrangement in a proper legal agreement, without affecting the continuation of the lease.

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Template Rent Relief Agreement for a Victorian retail lease

We have agreed with our landlord that we will get a discount on the rent we owe while the pandemic is causing us to lose business. We want a simple template agreement to make the discount binding because we are worried the landlord will throw us out, if we don't have an official agreement.

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Template Landlord and Tenant Temporary Lease Variation Deed for Covid-19 Pandemic

Our law firm requires a formal Deed of Variation of Lease. This is to record the rent relief terms that apply due to issues caused by the pandemic.

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Template Rent Relief Agreement for a Victorian retail lease

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CHECKLIST

Checklist - What's included in the Rent Relief Agreement Template?

Our Legal Zebra template addresses all the points you need to cover when varying a lease to allow for rent relief in Victoria, for a commercial property:

General legal tips
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Plus, you'll get easy to follow tips and examples to help you confidently turn your template into a legal document, customised for your requirements.

Description of the Lease
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The template includes space for you to clearly identify the lease and premises for which rent relief will apply.

Rent relief period
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This Agreement states the relevant period during which a rent waiver or deferral will apply. Eg, from March through to September 2020.

Rent reduction
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This Agreement template lets you specify the rent reduction amount. Eg, 80% rent reduction during the rent relief period.

Waive and/or defer rent
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This Agreement clearly states how much of the rent is waived (so it's not payable) and how much is deferred. Eg, This 80% rent reduction amount is treated as 50% waived, 50% deferred. So, of the total rent amount in the rent relief period:<br>

20% is payable as usual;<br>

40% is waived; and <br>

40% is deferred and payable as deferred rent payments.

Defer rent payments
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This Agreement is flexible enough to allow for a tenant to pay off the deferred rent by way of monthly installments. Payments can be made over 24 months or the remainder of the lease term (as per the Victorian Regulations).

Are outgoings waived?
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Has the tenant closed down for a period due to government restrictions? If this is the case and the landlord is waiving the outgoings because of the closure, you can easily state the outgoings waiver period in this Agreement. On the other hand, if the landlord has given a rent reduction but the tenant still needs to pay the outgoings, you can record this arrangement in this Agreement.

Extend the lease term
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Perhaps you've agreed to extend the lease term so the tenant has longer to pay off the deferred rent and to compensate the tenant for missing out on trade during the pandemic period. Well, this Agreement includes a simple provision to lengthen the current lease term.

Comply with Victorian leasing law
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The Agreement is drafted to ensure the parties comply with the COVID-19 Omnibus (Emergency Measures) Act 2020 (Act). That is, as well as the the COVID-19 Omnibus (Emergency Measures) (Commercial Leases and Licences) Regulations 2020 (Regulations) made in Victoria under the Act.

Collect outstanding rent
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Your tenant hasn't paid because they were waiting to settle on a rent agreement. With this Rent Relief Agreement, the tenant is required to get up to date and pay all outstanding rent (at the reduced rate).

More provisions re changes to your leasing arrangements due to the COVIDF-19 pandemic
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This comprehensive lease variation document contains many more provisions to secure and protect temporary changes to your leasing arrangements due to the COVIDF-19 pandemic.

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Try a Free Sample or download the complete Word & PDF Variation Deed for Victorian Rent Relief files instantly for only $77.

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Frequently Asked Questions

What is a Victorian commercial rent relief agreement, and why do you need one?
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A Commercial Rent Relief Agreement is a legal contract between a Landlord and a Tenant (also known as a Lease Variation Deed) that varies the rent the Tenant is required to pay for a specific period during the COVID-19 pandemic. It also deals with rent deferrals, outgoings and other issues pertinent to the pandemic.

There is a difference between a "commercial" rent relief agreement and a "residential" rent relief agreement. The former applies to a property that is leased to a business. This also includes retail premises that are subject to the Retail Leases Act 2003 (Victoria). Meanwhile a different set of rules applies when it comes to negotiating a rent discount for a tenant living in a home, known as residential premises.

The template we offer is for rent relief agreements made under the legal framework that applies to commercial premises located in Victoria, Australia. The relevant laws include the:

- the <a href="https://www.legislation.vic.gov.au/as-made/statutory-rules/covid-19-omnibus-emergency-measures-commercial-leases-and-licences">COVID-19 Omnibus (Emergency Measures) (Commercial Leases and Licences) Regulations 2020</a>. These Regulations came into force in Victoria on 1 May 2020; and

- the <a href="https://www.pm.gov.au/sites/default/files/files/national-cabinet-mandatory-code-ofconduct-sme-commercial-leasing-principles.pdf">Australian National Cabinet’s Mandatory Code of Conduct: SME Commercial Leasing Principles during COVID-19</a>. This is simply referred to as the National Code.

You can find useful information and updates to the relevant law at <a href="https://www.vsbc.vic.gov.au/your-rights-and-responsibilities/retail-tenants-and-landlords/">Victorian Small Business Commission</a>

When a tenant is given rent relief, it important to vary the Lease in an official manner. To do so, the Landlord and the Tenant must sign a formal document recording the terms of the Agreement and noting that the new terms override the existing terms in the Lease. This is commonly referred to as a Lease Variation Agreement or a Deed of Variation.

While a Lease can be varied for a number of reasons, a Rent Relief Agreement Template deals with specific amendments to the Lease that are intended to address issues raised by the pandemic. These include, in most cases, a waiver of the rent and/or deferral of part of the rent until the tenant's business recovers from the affects of the pandemic. It could also cover issues like an extension of the duration of the lease to give the tenant longer to pay any deferred rent.

Why is it important to have a formal Agreement in place to vary the Lease? Can't the Landlord simply send revised invoices with the reduced rent stated on them. Taking short cuts like this in an important legal matter can lead to disputes down the track.

You should be aware that without an Agreement in place, the tenant is at risk because even if they pay the reduced rent invoiced by the landlord, there's nothing to stop the landlord from pursuing the tenant at a later date for payment of the rent that was temporarily waived. This is likely to be a real problem if, for example, the landlord transfers the property and the new landlord refuses to honour the earlier agreement.

Similarly, a binding Rent Relief Agreement is important for the landlord. It assists them to evidence the terms of a deal. With a binding Agreement in place for payment of reduced rent, the landlord can enforce their rights against the tenant and ensure they receive payment.

Given the moratorium on evictions, without such an Agreement in place, the landlord does not have strong rights against the tenant. Indeed, a commercial landlord is now forced to negotiate with a tenant. It's only after the tenant has accepted and offer, and the landlord has confirmed the revised lease terms, that the landlord can pursue the tenant for payment of outstanding rent.

When to use Legal Zebra's rent relief template?
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Can you make your Commercial Rent Relief Agreement online?

Yes, this Commercial Rent Relief Agreement template can be used for landlord and tenants in Victoria to record the rent relier arrangements for a lease of commercial premises. This covers both commercial and retail premises. However, the template is not intended to be used for agreements about residential premises.

You can download the Legal Zebra Template instantly and put a basic legally binding Commercial Rent Relief Agreement in place. It generally takes less than 25 minutes to enter your details, after you download the document files.

The Legal Zebra Commercial Rent Relief Agreement Template is up to date and suitable for use in relation to premises located anywhere in Victoria, Australia.

This means you can use the Legal Zebra Template if you are varying or amending a commerical lease in Melbourne or any other part of Victoria, in response to the Covid-19 pandemic.

When to get a lawyer's help with rent disputes in Victoria
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Can you make your Commercial Rent Relief Agreement online?

Yes, this Commercial Rent Relief Agreement template can be used for landlord and tenants in Victoria to record the rent relier arrangements for a lease of commercial premises. This covers both commercial and retail premises. However, the template is not intended to be used for agreements about residential premises.

You can download the Legal Zebra Template instantly and put a basic legally binding Commercial Rent Relief Agreement in place. It generally takes less than 25 minutes to enter your details, after you download the document files.

The Legal Zebra Commercial Rent Relief Agreement Template is up to date and suitable for use in relation to premises located anywhere in Victoria, Australia.

This means you can use the Legal Zebra Template if you are varying or amending a commerical lease in Melbourne or any other part of Victoria, in response to the Covid-19 pandemic.

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Get help with your rent relief negotiations and agreement

I've drafted this template for rent relief agreements and varying your lease. I have also negotiated many disputes between landlords and tenants on behalf of clients. If you have a dispute you need help with, reach out. I'm very approachable.

Mr Shanti Rubens B.Com LLB

Lawyer, Legal Zebra
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We expect you'll be happy with Legal Zebra's Rent Relief Agreement. It's easy to use (clear and concise, without any legal mumbo jumbo) and will assist you to create a binding agreement, without any fuss.

If Legal Zebra's Template doesn't give you everything you need to make your Rent Relief Agreement online in minutes, not hours, and save you spending hundreds, if not thousands, of dollars on a lawyer, then contact us within 60 days of purchase for a 100% money back refund.

RELATED

Related Templates

When you make a Variation Deed for Victorian Rent Relief, it's a good time to consider these other documents: