Greater lease security needed

Posted On Wednesday, 26 February 2003 10:01 Published by
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The regulatory vacuum in the management of relations between commercial property tenants and landlords has claimed another victim, a small tenant
The regulatory vacuum in the management of relations between commercial property tenants and landlords has claimed another victim, a small tenant.

The whole stock of JetSet Luggage in The Zone@Rosebank was thrown out of the shop on Friday last week and employees of the business were kept outside by the shopping centre's security for the whole day.

The stock made it back inside the shop on Friday night after JetSet's management secured a court interdict against The Zone@Rosebank, a mediumsized shopping centre in the north of Johannesburg owned by Old Mutual Properties.

JetSet Luggage management declined to comment, saying the matter was too sensitive.

However, fellow tenants dubbed the landlord's treatment of JetSet Luggage as unfair. According to some tenants, The Zone@Rosebank's management has refused to renew JetSet's lease for no justifiable reason.

JetSet, which has been at the Zone@Rosebank for about 10 years, was evidently given a month's notice to move out because the centre management had found another tenant.

JetSet is said to have taken the matter to court, and the shopping centre management tried to remove JetSet's stock from the shop before the court's judgment.

'After tenanting the shopping centre for such a long period, they were told that they were not suitable for the shopping centre,' said a tenant who preferred to remain anonymous.

The tenant said this was unfair as JetSet had offered loyalty by remaining in the centre during its reconstruction, which had brought business to a halt.

'When things are improving they are told to move out,' said the tenant.

Old Mutual Properties' Rosebank centre manager, Mark Souries, would say only that 'we have not renewed their lease'.

Souries declined to comment further, saying that 'this is a private matter between a landlord and tenant'.

Several similar cases where small tenants are denied the right to renew leases for no justifiable reasons have been heard of around the country, with stakeholders saying the cases are indicating a regulatory vacuum.

Without legal recourse, small tenants are particularly vulnerable to abuse by landlords.

Seeing the escalation of such cases, the Restaurant and Food Services Association of SA has suggested the establishment of a statutory body to protect its members from abuse.

The struggle to obtain security for small tenants has received support from Cape Town-based lawyer Reid Corin, who says that tenants should be entitled to renew a lease as long as they are prepared to pay a market-related rental.

With the escalation of abuse by landlords, some small tenants are demanding that the 1998 Prevention of Illegal Eviction from and Unlawful Occupation of Land Act be extended to them.

This follows last year's controversial appeal court ruling that extended the provisions of the act to cover defaulting residential property tenants. The act was designed to deal with the eviction of land-invading squatters.

Business Day


Publisher: Business Day
Source: Business Day

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