Can a lease be terminated by COVID-19 out of frustration? In a global pandemic such as the current COVID 19 epidemic, the use of early termination or concessions under their leases is currently limited. First, it seems unlikely that COVID-19 will fall under a general force majeure clause without explicit wording, since this is not a foreseeable event. Second, the doctrine of frustration is limited and Hong Kong jurisprudence has not yet been put on the side of tenants who have attempted to argue that the public health crisis, with serious repercussions on economic and commercial disruption such as SARS, should be a good reason to terminate a lease. In practice, tenants can negotiate with their landlords for new regulations such as a rent reduction in light of the reality of business. Tenants could also consider ensuring such risks against the next pandemic outbreak. The best way to agree on this issue is for landlords and tenants to agree. As a landlord, he is expected to want a good amount of tenant stability; After all, the transition of tenants is the number one money flow killer in real estate. Without a tenant, your business cannot prosper or even stay afloat. This is why, in most cases, most leases are signed in lump sums for a period of at least one year and even, in some cases, for a minimum of two years. Landlords don`t like to let tenants suddenly break a lease for a good reason.
From a business perspective, this makes sense, because a high rate of tenant fluctuation is synonymous with permanent instability. No real estate owner or investor would be able to sit comfortably and know that they must constantly worry about renting their real estate units. The question of whether tenants want to break their tenancy agreement is actually fairly regular in the real estate sector. The termination of a tenancy agreement essentially means that a tenant must leave the apartment before his tenancy period is terminated in accordance with his tenancy agreement. The reasons why tenants want to break leases are often very varied and cover the whole spectrum, ranging from incredible and demented excuses to defensible circumstances. Some tenants simply want to break their lease because they “don`t want to live here anymore,” for “I`m expecting children and I have to move to a bigger house,” “I moved to a new country for a job.” Although landlords and tenants enter into the partnership, knowing full well what their rental date is, the real world is simply not possible. This may be because landlords and tenants are not on an equal footing, or because a tenant is a nightmare on the property. The tenancy agreement is a signed document that landlords and tenants must respect, but it is important to remember that as a landlord, it is not possible to force tenants to stay if they really do not wish to. As a general rule, penalties are imposed with an early violation of the right to rent, and even more so if the landlord and tenant do not agree on the reason for the breach of conditions before the written date of the contract. A viable option for tenants would be to work with their landlords to negotiate rent reductions or reductions to address the malfunctions caused by COVID-19`s EPITHEN.