Belgrade offers 50% rent reduction to its tenants
Tenants across Serbia began canceling lease agreements the moment the government declared a state of emergency. The result has been an immediate collapse in rental levels of as much as 50 percent, while those who can't cancel their leases or move are asking for rent reductions. The situation with large commercial leases is specific in that most include clauses that allow for potential periods of non-payment. But most tenants are currently seeking to use the state of emergency as the basis for negotiating a free rent period or a reduction in the amount they have to pay. Companies that are able to continue functioning by using home office practices are unlikely to succeed in such discussions since there's no ban on employees working in office buildings. However, the city of Belgrade has decided to defer rental payments until after the state of emergency is lifted. Within 30 days of its being lifted, tenants will have 30 days in which to decide whether to pay 50 percent of the back rent by by the end of the year, or to pay the full amount in 12 monthly installments by the end of 2021.