Need help with Commercial property owner

Discussion in 'Commercial Property' started by GoldCoastBound, 10th Apr, 2020.

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  1. GoldCoastBound

    GoldCoastBound Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    132
    Location:
    East Coast
    hello,

    my daughter in-law has had to close down her beauty parlor due to the Coronavirus, and is not sure what to say or how to approach the property owner about possibly not having to pay rent over the next 3-6 months.

    Any suggestions or something in particular she should say or ask for?

    thank you
     
  2. spuddy

    spuddy Member

    Joined:
    8th Apr, 2020
    Posts:
    9
    Location:
    Melbourne
    There are lots of lawyers providing a general interpretation of this situation at present. Here is a link to the PM's release (hopefully it works, if not just google "national cabinet mandatory code of conduct SME commercial" and it should be the first match).

    https://www.google.com/url?sa=t&rct...inciples.pdf&usg=AOvVaw387Vdrl-MgYv5KXgz_D3DD

    So businesses should contact their landlord to request a rent waiver and provide the following:
    - confirmation they are eligible for JobKeeper (i.e. turnover <$50 mill)
    - evidence of reduced trading (e.g. March 2020 income statement compared to March 2019 income).

    The reduction in turnover determines the minimum amount of rent the landlord must forgive and the code states that this reduction should be at least half the reduction in turnover. So a 100% reduction in turnover means at least a 50% reduction in rent for the duration of the pandemic. The remaining 50% of the rent could be deferred and paid back gradually once the business re-opens over the next 2 years or over the remaining lease period - whichever period is greater.
     
  3. GoldCoastBound

    GoldCoastBound Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    132
    Location:
    East Coast
    thanks so much, she will really appreciate this information