LEXIKON
COVID-19 and rent exemption or reduction
The issue of rent exemption or reduction for commercial tenants due to extraordinary circumstances in accordance with Sections 1104 and 1105 of the Austrian Civil Code (ABGB) (www.ris.bka.gv.at/bgbl) has attracted widespread media attention. It should be noted that companies that have had to close their businesses or premises due to the coronavirus crisis may, under certain circumstances, demand an exemption or reduction in rent. The extent to which this right actually exists is still very unclear at present and will ultimately have to be decided by the Supreme Court. In this context, however, it should be noted that Sections 1104 and 1105 ABGB are flexible laws and therefore other provisions may also be included in the lease agreement. A contractual provision whereby the landlord assumes no liability for a specific use of the business premises could constitute such an exclusion.