Covid-19: Struggling to pay - or collect - the rent?
South Africa is facing a deep and prolonged economic downturn amidst the Covid-19 outbreak.
Many tenants who were formerly in good standing will soon be unable to pay their rent.

Many leases don’t have a “force majeure” (aka “Act of God”) clause to cover for events such as Covid-19.
In other words, it’s a breach of contract, if a tenant becomes unable to pay.
But these are extraordinary times; landlords and tenants may come to an amicable agreement while the crisis persists.
The Money Show’s Bruce Whitfield interviewed Julian Scher (Partner & Property Lawyer at Strauss Scher Attorneys) about rental payment problems caused by Covid-19.
In most commercial leases you should find a clause that deals with events beyond the control of the parties… A classic example is if the building is destroyed…
Julian Scher, property lawyer - Strauss Scher Attorneys
Read the lease… if there is nothing in it, then we fall back on common law… it, unfortunately, doesn’t recognize hardship as a result of the Covid-19 environment…
Julian Scher, property lawyer - Strauss Scher Attorneys
In my view, Covid-19… performance is still possible…
Julian Scher, property lawyer - Strauss Scher Attorneys
For more detail, listen to the interview in the audio below.
This article first appeared on CapeTalk : Covid-19: Struggling to pay - or collect - the rent?

Source : https://previews.123rf.com/images/trgowanlock/trgowanlock1511/trgowanlock151100159/47994797-a-closed-sign-hanging-in-the-glass-doorway-of-a-shop-in-the-uk.jpg
More from MyMoney Online

Economy in 2021: 'Expect a better year for South African assets'
An economist expects China growth at 9.5%, US money-printing, rising metal prices and trade- and current-account surpluses in SA.
Read More
Retirement funds in SA are changing – new laws come into effect on 1 March 2021
Bruce Whitfield asks personal finance advisor Warren Ingram to explain in detail the new laws affecting provident funds.
Read More
How to buy your very first share – even if you have mere cents to invest
You can buy R1 (or even one cent) worth of shares. "The key to getting started is to get started," says Charles Savage.
Read More
Buying a new car may be possible – even if you can’t afford the monthly payments
Need new wheels? WesBank’s Lebogang Goaaketse discusses a popular method for making repayments more affordable.
Read More
Buy hugely discounted properties (up to 70% off) on auction right now
Distressed properties on auction are going for a song. Bruce Whitfield interviews property economist Francois Viruly.
Read More
Free Covid-19 vaccine for all medical aid members – Discovery CEO
"It’s mandatory for medical schemes to pay for for the Covid-19 vaccine," says Dr Ryan Noach, CEO at Discovery Health.
Read More
Vaccine optimism is priced in – asset manager
Investors are getting ahead of themselves, warns Pieter Hundersmarck, a fund manager at Flagship Asset Management.
Read More
Need new wheels? Car subscriptions at a monthly fee have arrived in South Africa
Bruce Whitfield interviews Tinashe Ruzane of FlexClub, where you can choose from a variety of car subscriptions for a monthly fee.
Read More
Naspers-owned Prosus (owner of Tencent) starts JSE's largest share buyback ever
The Money Show’s Bruce Whitfield interviews Basil Sgourdos, CFO at Naspers.
Read More
Pepkor Holdings profits fall 34% but gains 'significant' market share
The Money Show’s Bruce Whitfield interviews Leon Lourens, CEO at Pepkor Holdings.
Read MoreMore from Covid-19 coronavirus explained

Alcohol ban: Consol, hanging by a thread, burns through millions to stay alive
It cannot stop its furnaces, so it must keep them going. Bruce Whitfield interviews Mike Arnold, CEO at Consol Glass.
Read More
Covid-19 vaccine: Government may have to milk bone-dry taxpayers some more
Treasury is mulling raising taxes, says Prof Adrian Saville, Chief Executive of Cannon Asset Managers.
Read More
South African invention revolutionises oxygen delivery to Covid-19 patients
"I have witnessed this device saving lives," says Dr Warren Gregorowski of the proudly South African device.
Read More
'ANC is against another hard lockdown'
"Family meeting" – the scariest words in the English language. Bruce Whitfield interviews News24 Political Editor Qaanitah Hunter.
Read More
Free Covid-19 vaccine for all medical aid members – Discovery CEO
"It’s mandatory for medical schemes to pay for for the Covid-19 vaccine," says Dr Ryan Noach, CEO at Discovery Health.
Read More
[WATCH] President Ramaphosa on measures to battle 2nd Covid-19 wave
The President is addressing the nation on measures it's taking to combat the 2nd wave of Covid-19, now washing over South Africa.
Read More
Odds of catching Covid-19 vs crashing your car (and other calamities)
Dr Johan Ferreira (Senior Lecturer in Statistics at UP) on the chance of contracting Covid-19 compared to other dangers.
Read More
Lockdown destroyed 42.7% of small business in South Africa – study
It’s heart-breaking; the results of a study by Finfind and the Department of Small Business Development.
Read More
Vaccine optimism is priced in – asset manager
Investors are getting ahead of themselves, warns Pieter Hundersmarck, a fund manager at Flagship Asset Management.
Read More
Pfizer’s Covid-19 vaccine is extremely effective (90%)
Pfizer is on the verge of cracking a Covid-19 vaccine, says Dr Glenda Gray, CEO at Medical Research Council.
Read More