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Rental Property: Barriers to rent reductions

Significant problems in the implementation of the provisions providing for rent reductions at least by 30%, following agreements between landlords and tenants, as well as delays in implementing the arrangements for forced rent reductions by 40% found the Panhellenic Federation of Property Owners (POMIDA)……….

As it appears from what she points out in her announcement, the reluctance of landlords to enter into agreements with their tenants for rent reductions at least by 30% is due to the fact that ministerial decisions are issued that determine on a monthly basis the beneficiary tenants and the offsetting of the tax deductions to which the owners are entitled with their current tax debts., instead of issuing a decision for the entire four months of September-December 2020, as provided for in the relevant government legislation.

Furthermore, this attitude of the owners expresses -according to POMIDA- and their distrust of the ability of the Ministry of Finance to implement the specific provisions correctly and in a timely manner, since even to date the post has not even been completed, in the owners accounts on Taxisnet, of the amounts of the discounts (returns) corresponding to the compulsory rent reductions by 40% which took place during the four months March-June 2020, although the application for declaring the reductions made in October has already been opened! As POMIDA points out, "These problems must be addressed immediately by the officials of the Ministry of Finance".

Clarifications

Moreover, according to what POMIDA clarifies in its same announcement, by joint decision of the co-responsible ministers, which has retroactive effect from March, regulates a number of serious issues that have arisen during the implementation of the provisions on compulsory 40%. According, particularly, with this JMC:

* In any case of subletting a property, only the rent received by the lessor from his affected lessor is reduced, however, the rent owed to the landlord by the lessor is not reduced, because the latter does not carry out any affected activity on the rented property.

* In any case in which rents had already been paid without reduction while the tenant was entitled to the reduction, the 40% any amount of rent for which the tenant is normally released from the obligation to pay should be offset against subsequent rent payments. In case of non-existence of subsequent rent payments due to the termination of the employment relationship, the amount of the exemption must be claimed by the tenant as unduly paid amounts.

* In any case where there is more than one tenant and the conditions for payment of rent reduced by 40% do not apply to all employees, the reduction of the rent is calculated proportionally according to the share of participation of each beneficiary tenant in the total rent. An exception applies in the case of a spouse or other party to a cohabitation agreement where the rent is specifically reduced even if the suspension of work occurs in the person of the other spouse.

* In any case in which the rent is paid at the end of the lease or at shorter intervals and in any case longer than the month, the exemption from 40% of the total rent for the estimated months is calculated proportionally.

* The reductions in the main residence rents of the employees whose contract has been suspended are valid for the entire month for which the payment of reduced rents is foreseen., where appropriate, regardless of the days per month on which the employment contract is temporarily suspended.

From the print edition of the Free Press

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