Rental holidays unlikely without decision from govt, says property attorney

Property attorney Marlon Shevelew says a decision on Covid-19 rent holidays needs to come from South Africa's national executive.

If a policy decision does not come from the top, Shevelew says rental reprieves are not a realistic expectation.

Commercial tenants are facing pressures from landlords to remain open, despite declining footfall in many areas.

Both commercial and residential tenants are worried that they may not have enough income to pay rent as business slows down amid social distancing.

Shevelew says restaurants and bars could possibly qualify for rental relief because they are directly affected by the new regulations to contain the virus.

Government has banned all establishments from selling alcohol after 6pm and before 9am during week and beyond 1pm on weekends.

Shevelew says commercial tenants may possibly qualify for a remission of rent if they can prove that Covid-19 has had a direct impact on their trade.

However, without a decision from the government, legal battles between landlords and tenants will most likely unfold as the country deals with unprecedented times.

It's not fair and, unfortunately, it's going to be decided by way of an Executive decision because it's a policy issue.

Marlon Shevelew, Property attorney - Marlon Shevelew and Associates

There will be landlords who take their tenants to court and vice versa.

Marlon Shevelew, Property attorney - Marlon Shevelew and Associates

Unfortunately, a rental holiday is not something that tenants will be able to get used to, unless they can clearly show that they are directly impacted by the coronavirus.

Marlon Shevelew, Property attorney - Marlon Shevelew and Associates

Listen to the discussion on Afternoon Drive with John Maytham:

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