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ARTICLE · 04 SEPTEMBER 2020

Transitioning from the COVID leasing protections in NSW – Sneakerboy reveals some issues

Holding Redlich
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The COVID-19 leasing laws create enforcement issues, so further decisions will be both useful and necessary in NSW.

AustraliaReal Estate and Construction
Bede Haines
Bede Haines
Sam Darwish
Sam Darwish
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Sneakerboy (No 1) considered the COVID leasing laws. In its sequel –  Sneakerboy (No 2), the NSW Supreme Court gives clues, and points to difficulties, in how leasing life might play out once the leasing protections are rolled back on (maybe) 24 October 2020.

The landscape

Landlords have fast learned that 'prescribed actions' including termination cannot be taken against SME tenants for breaches such as arrears or not trading, where these have occurred during the 'prescribed period' – 24 April to 24 October 2020. Come 24 October 2020, unless extended – like in Victoria - landlords can again enforce their leases. This includes for arrears and not trading, but only if these breaches occur after 24 October 2020.  Breaches which occurred during the prescribed period remain ring-fenced. Landlords cannot end leases, following the prescribed period, for arrears accrued during the prescribed period.

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