Cancelation policy in case of COVID-19 restrictions
NOTE: This policy was applicable from March 2020 to March 2022. Since the current situation no longer requires special conditions, only the standard cancellation policy can be applied when canceling a valid lease.
Due to the uncertainty surrounding COVID-19 restrictions, which vary around the world and change very frequently, we decided to clarify the cancelation policy in case of COVID-19 restrictions, known as "COVID cancelation policy".
Flatio's standard cancelation policy remains valid and it's up to the tenant to decide which procedure (standard or COVID) they want to choose depending on their situation.
Tenants are entitled to use the COVID cancelation policy only if
- The area (where the property they rented is located) is on lockdown and they aren't allowed to enter the area.
- The country where they plan to travel to is on lockdown and they aren't allowed to cross the borders (They cannot enter the country.)
- They're in a quarantine ordered by a government authority.
- The country they're currently in has gone into lockdown and they aren't allowed to cross the borders (They cannot leave the country.)
The cancelation policy can be used by tenants only if the lease agreement has been signed and the first rent has been paid.
If the lease is in the process of signing and one of the situations described above has already occurred, the tenant is not entitled to use the COVID cancelation policy.
The request to use the COVID cancellation policy must be supported by an affidavit (download here). The tenant must send the affidavit to the landlord (to you) via Flatio's messaging system.
In all other cases, only the standard cancelation policy can be used.
The first rent
Technically, the lease agreement with the tenant is still valid at the time of COVID restrictions, but the tenant (due to force majeure) can't move in on the agreed date. So the first rent is kept safe in Flatio's special bank account until:
- The circumstances change and the tenant is able to move in. They won't be charged any rent for the time they couldn't use the property and the payment calendar will be updated based on the new move-in date. The move-out date will remain unchanged until you agree with the tenant on the change.
- The first rent is sent to the landlord after the tenant has actually moved in.
- The lease agreement expires while the circumstances still exist (i.e. the tenant cannot move in due to force majeure).
- The first rent will be fully refunded to their bank account in the next 30 working days after the end of the lease agreement.
- You and the tenant decide to terminate the lease agreement under the conditions agreed upon by both of you (mutually agreed termination of the lease).
- The first rent will be divided between you and the tenant, according to the mutual decision you make within 45 working days after the termination of the agreement. Remember that the tenant can still cancel the lease agreement using the standard cancelation policy.
The commission fee
You'll not be charged a commission until the tenant moves in. In the event of termination of the lease agreement by mutual agreement before the tenant moves in, you'll be charged the commission from the portion of the first rent that you decide to keep.
