Closed businesses: no penalties for non-payment of rent

Subject to certain conditions, companies that, as a result of administrative measures taken under the second lock-down, have had to close or are still forced to remain closed are protected from action by their landlords when they cannot pay their rent. Explanations.

Rents and rental expenses

Like last spring, the government is determined to protect businesses whose activity is “affected by an administrative policy measure” taken under the second lock-down and that cannot pay their rent. Above all, businesses that usually receive customers, but closed during the first lockdown (such as bookstores, perfumeries, etc.) or still closed during the second lock-down (such as coffee shops, restaurants, cinemas, theatres, sports halls, etc.) are concerned.

Thus, in the event of a default on rent and rental charges for a period, landlords are prohibited from applying financial penalties, late interest or damages. Besides, they are not allowed to sue the tenants, terminate the lease for non-payment of rent or bring court action against the personal guarantees of the tenants.

Similarly, proceedings already initiated, during this protected period, by landlords against their tenants for non-payment of rent are suspended.

The purpose of this measure is therefore to allow these very troubled companies to temporarily stop paying their rent without a penalty being imposed on them, and to consequently force their landlords to grant them rescheduling of payment.

This measure applies to all rents and rental expenses due between October 17, 2020 and the date on which a two-month delay, after the reopening of the business, expires.

Water and energy bills

Under certain conditions, these same businesses have the option of asking their water, gas and electricity supplier for a deferral of the payment of their invoices, received for their commercial premises, due between October 17, 2020 and the date on which a two-month delay, after the reopening of the business, expires. The supplier is obliged to grant them rescheduling of payment.

The deferred payments will be divided equally and paid over six months’ time together with the payment of the regular monthly payments.

Suppliers are prohibited from interrupting or reducing the distribution of water or energy to these businesses on the grounds that they would not have paid their bills due during the period defined above.