What to do to Reduce and/or Postpone your Rental Payments due to COVID-19/Lockdown​

Should you, a commercial tenant, be in the position of looking to postpone or reduce the rent payable to you as a result of COVID-19, we have outlined a two-step approach for you to follow below.

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2 JUNE 2020 • 2 MIN READ

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Reduce and or Postpone your Rental Payments due to COVID 19 Lockdown 1

April 23rd Update: 

We have made the letter requesting postponement FREE. Lease Addendum has been discounted for 70%

Due to the national lockdown as well as the Covid 19 epidemic preventing tenants from occupying the commercial premises that they have let, it could be regarded as being against public policy to require those tenants to continue paying rent in terms of the Lease Agreements.

In this regard, please read the blog article HERE from our sister website Legal Legends on the matter.

Head directly to our shop for the two documents you need:

  1. Letter requesting a postponement and/or reduction of rental payable;
  2. Lease addendum recording a postponement and/or reduction of rental.

Letter requesting a postponement and/or reduction of rental payable:

We suggest that a tenant firstly engage their landlord in order to agree in principle on the appropriate way forward.

In this regard, we have designed an automated letter which allows for a tenant to explain the basis on which the obligation to pay rent in the circumstances of a national lockdown is against public policy and further goes to suggest which months the tenant would either like to reduce their rent in respect of or have their rent postponed in respect of. 

The letter goes further to suggest in instances of postponement when they would like to resume payment of the rent.

Addendum to Lease Agreement recording the postponement and/or reduction of rental:

Once the letter referred to above has been sent and both the landlord and the tenant have come to an agreement regarding whether a postponement and/or a reduction will be applicable, one needs to record the terms of this in an Addendum Agreement to the main Lease Agreement.

Our automated Lease Agreement Addendum provides an easy mechanism in which an addendum may be created and which will record postponed and/or reduced monthly rentals in order that such may be agreed to and signed by both parties and binding on them.

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