Will you give commercial tenants a rent holiday?

No it isn't but it reflects on new leases elsewhere.

 

Last year suggested rental was $34k now listed for $27k only two viewing this year

 

Lol he told me he just rented it... did he get ripped off? Must be diff size?

 

Are you putting in a power substation ?

 

Yes that's correct. The medical imaging company needs lots of electricity and they are paying half of the substation cost.

 

Great move .
I like it when the tenant makes a large capital commitment to the property !

 

I think because the State govs will probably force hands, and the banks have put their hands up and are giving mortgage relief. I know for me turnover has dropped to 10% and will be 0% as of Monday when we close to save money. Haven't talked to LL yet but hoping he has a mortgage and the banks will hold the bag.

Also, he would never ever be able to rerent now, market has crashed and vacancies everywhere so it's in his interest to keep us long term, past this 3 or 6 month downturn.

 

It sounds like it's not really mortgage relief and pausing your mortgage will actually result in paying a greater total amount to the bank. And in return you want to take less money from your tenants? Does not compute for me!

 

My main concern is reduced rent relief even temporary by few landlords may set the tone for
upcoming market review for many others!!!

Given the context we are in, if tenant has to close up biz permanently and unable to serve out
lease, will landlord be able to forfeit the security bond as a bit of relief in lieu of missed rents
going forward?

OTOH, I think I've seen The Age live update briefly mentioning there may be rent rescue package
coming for commercial tenants. Anyone heard something similar?

Thanks,
FXD

 

https://www.smh.com.au/politics/fed...-protected-from-eviction-20200325-p54dvl.html

Apparently trying to decide whether to pay tenants directly to pay the landlords, pay landlords directly or pay the banks to give the relief.

Modelling shows its the only way for the economy to stage a relatively quick recovery.

 

Not all property owners have mortgages, so the relief would not be equitable if it were paid to the Banks.

 

Oh imagine the number of people taking advantage of this. Also a tenant has less security.

If I run a chicken shop and amass too much rent in arrears I can walk. A landlord can’t walk on a bank. Moral hazard issue.

 

maybe worthwhile clarifying claim eligibility for rent default cover during pandemic with your
insurance if you have happen to have taken out such cover. I am sure there may be lots of fine
prints lol

 

I am biased as a landlord but if banks are giving payment holidays to mortgage holders and the P and I eventually still needs to be repaid then why can't landlords do that with tenants? Don't evict them but put rent payments on hold and they resume paying rent and what is in arrears once the economy starts moving again?

 

Oh I can see the number of tenants not pay rent, and then do a runner. Of course there are good people too, but the govt has just opened the floodgate of temptation.

 

This was really focused on commercial tenancies, where I don't see an ability or willingness to backpay the lost rent, no matter how reduced it is.

I'd prefer to break my tenancy now and forfeit my security than try and repay 6 months rent once we re-open. And the LL would be worse off, there's no way he's re-renting it out in the next year at least, heaps of properties around us are empty and have been for a long time.

 

On our two small retail shops that sell discretionary items (homewares and cosmetics), we have offered a 2/3 rent reduction for 3 months (ie pay 1/3 of the rent) with outgoings still needing to be paid. No need to catch up later.

| hope they are also eligible for government payments like JobKeeper etc.