Fixed date rental: this type of leasing indicates the exact end date of the rental agreement. This is advantageous for both parties, as the duration of the lease is fixed in advance, the rent cannot be increased during this period, and no changes to the lease can be made unless the lessor adds a clause in the rental agreement and the tenant agrees. A commercial lease must be used whenever commercial property is leased by a lessor or tenant. While many businesses are affected by the current pandemic, not all of them are affected in the same way and any claim for financial relief under a lease agreement must be considered in the context of the specific situations of the landlord and tenant: each landlord and tenant have ongoing business commitments, including the pay slip, benefits, equipment rents, secured/unsecured loan financing, taxes, and insurance payments, to name a few. To date, government subsidy programs have been announced, some government agencies have implemented payment deferral programs, such as property taxes, and financial institutions are considering applying for credit payments or other credit payment agreements. Of particular importance to commercial property owners, the federal government has announced its intention to implement the Commercial Investment Assistance Program for Small Businesses. This program will seek to provide loans, including forgivable loans, to commercial property owners who, in turn, would lower or grant rents to be paid by small entrepreneurs for April (retroactive), May and June. Please click here for more information on government assistance programs. For example, if a tenant had a 12-month lease with automatic renewal, the lease could remain mandatory and valid after the 12 months if both parties agree.

If neither party objects, the lease would simply be extended for a further 12 months. 10.1 If the tenant continues to live in the premises without the written consent of the lessor after the expiry or any other end of duration, the tenant, without further written agreement, is a minimum monthly tenant equal to twice the basic rent and is always subject to all other provisions of the rental agreement, insofar as it is not created for a monthly lease and a lease from year to year by the effect of the laws. Improvements: Sometimes a tenant requires certain improvements to be made to the property in order to help them properly carry out their day-to-day operations. An owner must authorize these changes and, depending on what they are, pay and conclude. Improvements can spread to the tenant at the end of the lease and generally lose value over the life of the lease. If the concept of rent deferral is acceptable to both the landlord and the tenant, the parties should also take into account when such deferred rent must be paid: regular payments over a specified period or on a lump sum basis. GST-ATTENTION: Keep in mind that the GST must be paid on a commercial rent by the tenant and can be recovered by the landlord at the beginning of the rent due date and the day the rent is paid. Therefore, when structuring a lease agreement, consider changing the lease date as part of the lease agreement so that the deferral applies to the tenant`s obligation to pay the GST for the rent and the rent itself. To defer the lessor`s obligation to transfer the GST, it is necessary to change the due date of the rent; However, the lessor will want to ensure that such a change does not result in the abandonment of other important rights that it may have under the lease agreement. If the lessor and tenant agree to change the rent obligations, the parties should check whether the rental agreement requires such changes which must be signed in writing and by both parties, as is usually the case….