{"id":4520,"date":"2020-06-09T09:01:36","date_gmt":"2020-06-09T01:01:36","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=4520"},"modified":"2020-06-22T15:33:30","modified_gmt":"2020-06-22T07:33:30","slug":"rental-relief-for-affected-smes-how-much-do-landlords-need-to-rebate-tenants","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/rental-relief-for-affected-smes-how-much-do-landlords-need-to-rebate-tenants\/","title":{"rendered":"Rental Relief For Affected SMEs: How Much Do Landlords Need To Rebate Their Tenants?"},"content":{"rendered":"\n

Commercial properties landlords have been brought to the limelight recently as many businesses, including F&B companies, struggle to survive the COVID-19 pandemic.<\/p>\n\n\n\n

There is a growing concern that landlords of commercial properties may not be doing enough. And fortunately (or unfortunately for landlords), the government will be introducing a COVID-19 Bill in parliament<\/a> that, when passed, will make it mandatory for landlords to provide additional rental relief to affected tenants. <\/p>\n\n\n\n

As shared during the Fortitude Budget<\/a>, the Singapore government will provide a cash grant to offset the SME owners\u2019 rental cost, which would be disbursed through landlords. It\u2019s important to note that landlords have to pass the cash grants to their tenants as required by the law. This is in additional to the property tax rebate that was announced in earlier budgets.<\/p>\n\n\n\n

In total, the government estimated that it would be providing an equivalent of about 2 months of rent for qualifying commercial properties and about 1 month of rent for industrial and office properties. <\/p>\n\n\n\n

However, it appears this isn\u2019t enough. And rightly so in our humble opinion. With the circuit breaker already taking up 2 months, some businesses would need even further support to survive.<\/p>\n\n\n\n

Read Also: <\/strong><\/em>5 Key Things You Need To Know About The COVID-19 Temporary Bill<\/strong><\/em><\/a><\/p>\n\n\n\n

Additional Rental Relief To Be Provided By Landlords<\/h3>\n\n\n\n

Given the current economic conditions, commercial landlords are likely to suffer if their tenants are unable to continue their business operations. Finding new business tenants would be incredibly tough and landlords may find their commercial properties go unrented for a period of time. Let\u2019s face it, 2020 is not exactly a year where people are scrambling to start new businesses and to find new offices.<\/p>\n\n\n\n

Thus, it makes sense that commercial landlords should do their part to support their tenants, rather than have a short-term profiteering mindset.<\/p>\n\n\n\n

The rental relief bill would require landlords to give eligible SMEs in Singapore additional rental waivers. This would be two months for qualifying commercial properties<\/strong>, and one month for industrial and office properties<\/strong>. This will apply in June and July 2020 for commercial properties, and May 2020 for SMEs in industrial and office properties. <\/p>\n\n\n\n

Eligibility Criteria To Qualify For Additional Rental Relief<\/h3>\n\n\n\n

To get the additional relief, tenants have to satisfy all the following criteria. <\/p>\n\n\n\n