Commercial tenants in rent crisis

MANY commercial tenants will be unable to pay their full rents at the end of April as a result of the Covid-19 pandemic, according to the National Employers Association of SA (Neasa).

Neasa undertook a survey a week after the newly launched Property Industry Group announced an industrywide assistance and relief package to be rolled out by landlords nationally.

The survey found most commercial landlords were not granting any means of rental relief to their tenants in the face of the pandemic.

Chief executive at Neasa, Gerhard Papenfus, said: “After a survey conducted among our members in retail, it’s become clear that the majority of commercial landlords are not granting any means of rental relief to tenants.

“Only 10% of the participants of the survey confirmed that they can afford to pay rent, either in full or partially, during the lockdown – presuming that the lockdown is completely lifted at the end of April.

“In some cases, where relief was proposed, it amounted to meagre solutions to this imminent problem.

“Some landlords have already issued letters of demand to their tenants for non-payment.

“This dire situation, affecting an enormous number of SMMEs, calls for a stand on the side of the retail sector.

“If tenants don’t survive this period, neither will the landlords.”

After it was launched just over a week ago, the Property Industry Group announced an industry-wide assistance and relief package which it said would amount to as much as 100% off for some retail tenants.