More Latvian State Renters to receive rent relief

By: Auther Bett
Auther Bett
Auther V. Bett, CPA started reporting in the finance and accounting space in 2016. His interests span stocks, bonds, real estate,… read more.
on May 14, 2020
  • Latvia State Real Estate will now cover more tenants in its rent relief program.
  • The initiative has been expanded to cover more entrepreneurs, associations, foundations, among others.
  • Parties that had been turned away are now free to reapply.

Latvian State real estate has now been permitted to expand the range of tenants supported under a recent government program meant to cushion tenants against the hard-economic times following the ongoing lockdown measures.

Thanks to an amendment to the requirements to qualifications for beneficiaries of the program, Latvian State Real Estate (VNĪ) will now extend its rent exemption or reduction initiative to include not just business people but also other persons assisting the economy to recover, Andris Vārna, a member of the VNĪ board said.

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 According to the amendment, parties that are set to benefit from the state relief include foundations and associations, and persons that have agreed on reasonable terms for repayment of rent in arrears. The additional changes have also captured a decline in the income of tenants as a possible reason for rent exemption or reduction, according to Vārna.

The support by VNĪ initially included opportunities for some 89 tenants for 111 rental contracts. Of the 89, 21 failed to meet the criteria for an ‘entrepreneur, effectively cutting down the number to 57 tenants.

“Support for tenants is currently a priority for VNĪ. We are working intensely to provide all possible support to our tenants and partners who have ended up in difficulties per the law. Thanks to amendments approved by the government we can expand and equalize the support provided to entrepreneurs, associations and foundations, as well as other persons performing economic operations.

Relief reapplication

“We also invite tenants who were previously declined support to review updated requirements and turn to us again,” said Vārna, as reported by Baltic News Network.

VNĪ currently works with close to 10,000 tenants, with less than 10% being commercial companies. Other beneficiaries of the program include health centres, hotel and catering service providers, pharmacies, stores, among others.

Following the spread of the Coronavirus, VNĪ provides support to the small and medium-sized businesses as per the last month directive by the Cabinet of Ministers. The support initiative started on March 12 and will be active until the law on Measures for the Prevention and Suppression of Threat to the State and Its Consequences Due to the Spread of COVID-19 ceases.

Eligible tenants are invited to tender their applications to Additional information can be found on VNĪ website and requirements of Cabinet Ministers.

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