Are you a business owner with a commercial lease? Are you concerned that you are paying for your lease whilst unable to occupy it?
The COVID-19 pandemic has ushered in unprecedented challenges for business owners worldwide, particularly with the imposition of lockdowns affecting the ability to operate from commercial premises. One critical aspect that has come to the forefront is the handling of commercial leases during these periods of forced closure. In this article we’ll explore the intricacies of lease provisions during lockdowns, offering insights, advice, and practical steps for tenants navigating these turbulent times.
A particular clause in the Auckland District Law Society Deed of Lease has become a focal point for businesses affected by COVID-19 lockdowns. This clause provides tenants with the possibility not to pay rent if they cannot access their premises to conduct business due to emergency conditions impacting public safety or requiring hazard mitigation. The activation of this clause is contingent upon the restriction being enforced by a competent authority, such as the New Zealand government.
For tenants to qualify for rent suspension under this clause, several conditions must be met:
In light of these provisions, tenants must navigate their next steps cautiously:
The key takeaway for tenants during these challenging times is the importance of working together with landlords to overcome the difficulties presented by COVID-19 lockdowns. By being informed about your legal options and seeking professional advice, you can navigate the complexities of your commercial lease and work towards solutions that support the continuity of your business.
At Norling Law, we offer a FREE 30-minute legal consult. Get in touch if you need help.
Brent is the Director of Norling Law. He has a wealth of experience in the District Court, High Court, Court of Appeal and Supreme Court. Brent is passionate about negotiating favourable outcomes for his clients and able to implement this in his daily negotiations.
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