Rental guarantees and COVID-19

Discussion in 'Commercial Property' started by Simon Hampel, 24th Apr, 2020.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

    9th Jun, 2005
    Seems rental guarantees aren't worth the paper they're written on. I guess it's no different to most other commercial leases right now though.

    Apartment owners gain last-minute win over Quest as coronavirus hits incomes

    Key points:
    • The Degenhardts own a Quest Potts Point apartment but they cannot live in it
    • They decided to invest as their contract "guaranteed" a monthly income
    • Lawyer and owner Tania Waterhouse is representing 40 fellow owners and says for many the investment is their sole income
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    18th Jun, 2015
    And travel agents refusing refunds on refundable fares
    No return policies on much that Aldi, Coles & Woolworth sell !! (you may have touched it...but watch them take the second pack of loo paper from your hands)
    Not even refunds on full flexible airfares by major airlines.
    Airline points
    What is a lease really ?

    I reckon that the time after this virus has passed is when a lot of reckoning will take place.
    All the bills will need to be paid and debts settled. Financial and non-financial.

    The Quest owners are now realising they were just (unsecured?) borrowers who facilited a loan so that Quest keeps its balance sheet clean.
  3. Scott No Mates

    Scott No Mates Well-Known Member

    18th Jun, 2015
    Sydney or NSW or Australia
    Another rental guarantee which isn't worth the paper that it's written on.

    That causes me to think about those who've invested in Commercial Syndicates, often with a minimum of $250k (as 'sophisticated investors' to escape some of the ASIC requirements on the public offer). These properties are commonly leased to ASX listed companies, who too, have had their turnover impacted but probably don't qualify for many of the government incentives. Have the asset & property managers for these investments pulled back on the monthly distributions to the Syndicate members whilst still pulling their management fees?