Rentals and the Disaster Management Act - “Catch 22”
Landlords and tenants have been adversely affected by the pandemic that is generally known as COVID19. The letting industry, commercial & residential, has suffered financially due to the restrictions enforced on businesses and citizens by the enactment and stringent enforcement of the Disaster Management Act.
While the economy recovers landlords and tenants find themselves in new territory regarding normal contractual obligations. Standard lease agreements cover most of the possible breaches of contract for the tenant or landlord and the legal recourse to correct a breach of terms and conditions of the agreement.
Since restrictions of citizens' normal movement and closing of businesses, enforced by the government under the Act, tenants have lost the ability to earn an income and pay their rent. On the other hand the restrictions have made residential evictions illegal during the period gazetted for landlords not collecting rental due.
It seems the perfect Catch 22 scenario, the tenant cannot pay rent or move and the landlord cannot collect rent or evict. Neither party wanted the scenario but have found themselves in a situation not of their intention or ability to correct. Each situation is unique and we’ll have to wait for court rulings as cases progress through the legal system, for now though the general advice is to negotiate with your landlord or tenant on any possible new terms and conditions for the duration.
If you need advice please contact a property professional.
Nic Campher
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