Eligible sub-tenants of government-owned properties managed by the Singapore Land Authority (SLA) will benefit from additional rental waivers.
The waivers are going to more than 2,000 commercial tenants and around 100 social-sector tenants of these properties, as part of assistance to coronavirus-hit businesses.
Master tenants – those who have sublet state property – must pass on the rent relief to more than 2,000 eligible sub-tenants, the SLA said yesterday.
This is in line with the Covid 19 (Temporary Measures) (Amendment) Bill passed last week to help small and medium-sized enterprises (SMEs) by sharing rental obligations between the Government, landlords and tenants.
Eligible tenants in commercial accommodation, food and beverage, retail, recreation/entertainment, healthcare and other services will get four months’ rent waiver from April to next month.
These tenants are then required to give four-month rent relief to any eligible SME and non-profit organisation in those sectors that are sub-leasing space.
The same four-month waiver will also go to eligible social-sector tenants of state properties.
Tenants of commercial offices, and those in the industrial and agriculture sectors will get a two-month rental waiver.
They, in turn, must pass on the same two-month waiver to eligible SME and non-profit organisation sub-tenants.
Master tenants must also sign an undertaking that they have provided the mandated rent relief to eligible commercial SMEs and non-profit organisation sub-tenants.
If sub-tenants are not SMEs or do not qualify for relief, master tenants must still pass down at least 80 per cent of the rental waivers they receive.
Master tenants can offset the rent relief granted to sub-tenants with any previous monetary assistance provided from February.
Both master tenants and sub-tenants with cash flow concerns can apply for deferred payment of rent arrears accumulated from Feb 1 until Oct 19.
The arrears can be repaid in equal instalments over a nine-month period, with interest capped at 3 per cent a year.
Master tenants with cash flow concerns can ask the SLA for an assessment, if they are unable to provide the full rental waiver.
And master tenants and sub-tenants can offset rent arrears incurred from Feb 1 to Oct 19 with their security deposit.
But at least one month’s worth of rent must remain in the security deposit and the entire deposit must be replenished to the contractual amount at the end of the nine-month repayment period.
Updated from : The Straits Times, 12 June 2020