The South Australian Business Chamber Today — 27 January, 2022
As the nation continues to open from COVID, many lawyers experienced an upsurge in contractual disputes from many sectors, particularly affecting small businesses. Since the commencement of the COVID pandemic in early 2020, as a manifestation of the pressure on small (and medium-sized) businesses, our experience showed many disputes concerned commercial leases. Many businesses in South Australia saw significant disruptions, requiring them to deal with several concerns, including staffing and operational issues resulting from lockdowns and cancellation of contracts and occupancy and leasing issues. The most prominent issue was that businesses could not keep up with rent payments.
From April 2020 until February 2021, the State Government had in place a safety net of sorts in the COVID-19 Emergency Response Act, which provided some ability for landlords and tenants to, in good faith, negotiate some form of relief relating to rent. The relevant provisions (i.e. relating to temporary rent relief) of that Act have expired. There does not appear to be any other form of statutory relief on the horizon. Notwithstanding this, it is our view that despite the expiration of such statutory relief, many businesses are still suffering from the hardships arising from the COVID pandemic. So, unfortunately, disputes arising over leases are expected to continue.
Despite these challenges, the South Australian Business Chamber members are not alone as both the South Australian Business Chamber and Commercial and Legal have resources and expertise to assist. We have acted for both landlords and tenants located in South Australia and nationally and so we are well placed to assist businesses dealing with lease-related issues.
If you believe that you will struggle to comply with the terms of your lease (such as paying rent) we recommend that you try to get ahead of the issue as soon as possible. In our view, a lease is simply another form of contract and [many] parties to contracts try to take a commercial approach to resolving disputes. One reasonable solution may be to engage the other side (whether you are the landlord or tenant as the case may be) and seek to negotiate a resolution.
Everybody’s particular situation will be different so it is also important to seek the right advice from experts who understand the intricacies of commercial leases before taking any steps.
A business that plans for the future, and seeks proper and timely advice, is a business that can navigate difficult times, and we are here to help. To date, Commercial and Legal have assisted many the South Australian Business Chamber members to navigate their leasing disputes and find a workable solution to get through these COVID-19 times.
Whether you are a landlord or a tenant, you can reach out to Commercial and Legal if you are a the South Australian Business Chamber member. We will happily have a 30-minute phone consultation with you (at no cost) to discuss your situation and workshop some solutions.
Author: Peter Berekally
If you have any questions relating to COVID-19 and its impact on your business in general or lease in particular, please contact Graham Hall or Peter Berekally at Commercial & Legal on 8206 8444 for advice about your rights and obligations.
