Landlords And Tenants vs COVID-19

In the wake of the disruption to daily lives caused by the COVID-19 outbreak in Singapore, restaurateurs and retailers have faced the brunt of consumers, customers and tourists avoiding crowded public places, eating out or visiting their physical shops. Losses are mounting due to the major impact of the disruption, and many businesses have called on their landlords for help in cushioning the impact of the ongoing pandemic. This article briefly explores the legal obligations between landlords and tenants in the context of the disruptions caused by COVID-19.

The Landlord's Helping Hand

On 13 February 2020, the Restaurant Association of Singapore wrote to 24 major landlords including CapitaLand, Frasers and Mapletree, requesting for rental rebates of up to 50% for the months of February, March and April, on behalf of its 450 members, operating close to 4,000 outlets. It was estimated that takings plunged by as much as 80% following the outbreak, with around 200,000 food and beverage jobs at risk.

The Singapore Retailers Association also revealed similar statistics and called on landlords to assist in relieving rent repayment pressure from their retail tenants through measures such as rent waivers, rent rebates and allowing their tenants shorter hours of operation. Across the causeway, various Malaysian retail associations have similarly appealed to landlords and owners to give rental rebates of between 30% and 50% for the next six months to assist retailers in riding out the effects of the COVID-19 outbreak.

Jewel Changi Airport was amongst the first to respond, reaching out to its tenants with a 50% rebate for rent payable for the months of February and March 2020. Major landlord CapitaLand also announced “wide-ranging” support measures for their retail tenants, comprising approximately 3,500 stores across its portfolio of shopping malls, which include a S$10 million marketing assistance programme and the flexibility to operate shorter hours. These moves follow Hong Kong's biggest landlords such as Sun Hung Kai Properties, Lan Kwai Fong Group, and New World Development - all of whom have offered similar rental concessions to their tenants.

As other tenants continue to hold the line, a key question has come to the forefront: in the face of a public health emergency, what is the legal obligation on the landlord to answer their tenants' call for help?

Rights under the tenancy agreement amid a public health emergency

As a starting point, the...