14 Oct 2020

Lawyer: Covid-induced rent dispute measures need greater teeth

From Nine To Noon, 9:08 am on 14 October 2020

A lawyer acting for a group of Auckland tenants who have been served notice to pay rent arrears says business evictions will become common, unless there are stronger measures for solving Covid-induced rent disputes.

Kate Sheehan is acting on behalf of eateries based in Elliott Stables, in the central city.

They've been served Property Law Act notices for rent and operating expenses they owe to their landlord, Icon Group. Icon delivered $675,000 in rent relief to the tenants during the first lockdown.

But the tenants argue the second lockdown, ongoing roadworks and a lack of foot traffic have meant they're operating at an extensive loss.

Because the tenants received some rent relief, they're also ineligible for help from the government's new $40m arbitration services fund.

The group is crowd-funding help for legal fees, which they say could lead to a law change to prevent others being caught in this situation.

No caption

Photo: Heart of the City