Assisting restaurants to stay afloat- getting rent rebates for lockdown periods

Many restaurants and similar businesses are struggling to remain afloat due to the pressures of having to pay rent despite decreased income due to the pandemic. We have found a legal solution which can dramatically reduce your rent. We can use it even though the lockdown restrictions have eased.

 

Who qualifies

  1. A restaurant or similar business whose ability to trade was affected by the lockdown regulations, e.g. curfew, booze ban, limits on numbers of patrons etc.
  2. The owner is a company or CC with a turnover that dropped below R1million for the last tax year or an individual (then any turnover applies)
  3. Your landlord didn’t give you a full rebate on rental for the periods during which your ability to trade normally was affected.

 

We will need from you:

  1. A copy of your lease
  2. A statement of account from your landlord showing the rent charged and what payments have been made
  3. Details on all periods during which you closed or operated during limited hours.
  4. Proof of your turnover and nett asset value for the last financial year
  5. Proof of your turnover and nett asset value during the tax year just before you signed your lease.

 

How we propose to persuade your landlord to give you a rental rebate

  1. We will familiarise ourselves with your lease, the impact of the pandemic regulations on your ability to trade, and calculate the amount of rent rebate you can claim from your landlord.
  2. In very simple cases and where you have an excellent relationship with your landlord and have faith in their goodwill, we will call the landlord and explain the situation.
  3. In other cases, we will draft a four or five page letter in which we set out the claim, and list the ways in which the lease doesn’t comply with the Consumer Protection Act. We will follow up with a phone call or email if we don’t have a reply from the landlord or their legal representative within a week.
  4. If the landlord asks for further information, we will deal with that request.
  5. If further legal action is required, we can contact the press, refer the dispute to the Consumer Goods and Services ombud, or in cases where the amount justifies it, take the claim for the rental rebate to court or to the National Consumer Tribunal.

 

Discounted legal fee offer:

For step 1 and 2: R5 750 (VAT inclusive)

For step 1 and 3 (this will apply in most cases): R7 400 (VAT-inclusive)

For steps 4 and 5 (if needed, and only if the restauranteur gives the go-ahead): We will charge at our usual hourly rates, namely R3 500 plus VAT per hour (Trudie Broekmann) or R1 925 plus VAT per hour (Trudie’s associate attorney).

Contact us on admin@broekmann.co.za if you wish to make use of this offer.

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