Rent – A Solution for Tenants and Landlords
Non-repayable grants for commercial rent ended at midnight on June 15.
Rent – A Solution for Tenants and Landlords
In the absence of a federal solution, Neuchâtel-based associations representing landlords and tenants, along with the cantonal government, have reached an agreement offering the parties involved a solution to resolve the issue of rent for commercial properties that were ordered to close as part of the measures related to COVID-19. This balanced agreement is based on a shared burden among tenants, landlords, and the canton.
Purpose and Scope of the Agreement
The agreement covers commercial properties located in the canton of Neuchâtel and leased by tenants whose primary business activity has been prohibited by a decision of the authorities as part of measures related to COVID-19.
The agreement covers the period from early March to late June 2020. It is based on two principles:
- During the mandatory closure period, beginning March 17, 2020:
- The rent, excluding utilities, is paid 25% by the tenant, 25% by the government, and 50% by the landlord.
- The rent amounts taken into account for this allocation are capped at 3,000 francs for tenants who were able to resume their business operations on April 27, 2020, and at 5,000 francs for those authorized to resume operations on subsequent dates set by the Federal Council. When the rent exceeds these amounts, government assistance is based on these caps, provided that the landlord agrees to waive at least twice the amount paid by the government.
- Except during periods of mandated closure: tenants are expected to pay rent as usual. The landlord is, of course, free to offer greater flexibility.
It should be noted that public entities that own properties are not covered by the agreement but are expected to make an effort to ensure that tenants pay no more than 25 percent of the rent during periods of closure.
You can view the agreement signed by the various parties (PDF)
Model Agreement and Calculator
To apply for financial assistance from the Canton of Neuchâtel, the landlord and tenant must complete, accept, and sign the financial assistance agreement for commercial rent. This is the first step in your application; you will need to complete it on this same webpage starting May 15, when the form will be available online.
An online calculator is available to help you enter the amounts allocated to each party in the agreement.
Form
After signing the agreement (tenant and landlord), you can fill out the support application form. It is structured as follows:
- The tenant fills out their information and attaches the signed lease agreement at this stage. Their request triggers an automatic email to the landlord.
- The landlord fills out the information about themselves. Once their request is approved, the selected partner (Asloca, Gastroneuch, USPI, CIN) automatically receives an email. They are responsible for verifying all the information and approving it. Their approval finalizes the application.
- The Economic Affairs Department receives the complete application and processes the payment if the application has been approved by the partner.