The emergency law to deal with the Covid-19 epidemic was definitively adopted on March 22 and promulgated on March 23, 2020. It was published in the Official Journal on March 24, 2020.

This emergency bill, as adopted by the Senate on March 19, 2020, was amended by the National Assembly. Here are the main changes regarding the suspension of rents.

1/ On the concept of “very small businesses whose activity is affected by the spread of the epidemic

The legislator has specified the companies likely to benefit from the suspension of rents.

These are microenterprises within the meaning of Article 3 of Decree No. 2008-1354 of December 18, 2008, i.e. those that meet the following two conditions :

  • occupy less than 10 people ;
  • have an annual revenue or balance sheet total not exceeding 2 million Euros.

 2/ On the suspension mechanism

The legislator specifies that the postponement of rent payments may be integral.

However, we do not have any additional information on how this suspension will be implemented. Matters to be followed up with regard to the Government orders to be issued under the Emergency law to deal with the Covid-19 epidemic of March 23, 2020.

3/ On the nature of the premises concerned

In addition to professional premises, commercial premises are also affected by this suspension

Craft premises are not expressly referred to, but it is possible to consider that the concept of professional premises also includes craft premises.

 

For more information, #COVID-19 : Can the payment of rent, water, electricity or gas be suspended?

Hanan CHAOUI

Partner - Commercial lease and real estate
Hanan Chaoui holds a doctorate in law and specializes in real estate. She assists her clients having leasing disputes with any type of assets and rental relations. She accompanies them on problematics such as eviction compensation and fixing the rent. She conducts audits and analysis of rental conditions as well as drafting and negotiating rental agreements.

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