Small land lords time to shine
COSBOA has profoundly congratulated those small landlords around the country who have already cut their rent or in some cases stopped rent for businesses who have no income due to the COVID-19 crisis. We call upon all the small landlords around the country to do what they can for others in distress.
Peter Strong, CEO of COSBOA, stated ‘small landlords are often small business people or families who have invested in property and have rented out to others either as commercial or as residential leases. These landlords may also be experiencing the difficulties of hard times, particularly for those whose income is inextricably linked to the property they lease, such as retired people. Yet, with the announcement from the banks that there is no need for loan repayments for small businesses borrowers for the next 6 months there is an opportunity to pass this saving onto tenants.”
COSBOA knows the pain and anguish suffered by businesses who have no income yet have rent and often wages to pay. Landlords will not benefit from bankrupted business tenants. COSBOA knows that the employees of small businesses are often valued like family and they must be considered for rent relief by residential landlords as their tenant may now be on a lower income, without a job and trying to be ‘Centrelinked’ but are having trouble due to the overwhelming of the MyGov system.
Mr Strong added “it is imperative for every small landlord with a bank loan to contact their bank and get the loan repayment holiday if they are eligible. Then immediately pass that onto their tenants.’
Mr Strong added “any small landlord who takes the loan holiday and then doesn’t pass on that saving to the tenants would be a failure as a person and as a member of our society. The biggest landlords, such as Westfields, Stocklands and the Scentre Group, have shown they are the lowest members of the big business community with their callous callow response to the needs of struggling and closing small business retailers. The small landlords will be no different if they were not to pass on the saving.”
Note for tenants: Not all landlords have loans from banks and may not receive the repayment holiday and may not be able to pass on any savings. Check with your landlord and ask if they have sought to take advantage of the bank repayment hiatus.
My understanding of the repayment holiday is that the payments are stopped for an agreed period, 3-6 months, but then once that period is up the lender recalculates the minimum repayment for the remaining loan term ie increases it to make up for the missed payments and unpaid interest. It gives you some breathing space but ultimately you still have to pay for the period you missed. Is this correct? If so, landlords wouldn’t be passing on a “saving” to their tenants
You have breathing space as you put it however you will still accrue interest which will have to be paid in the future. (Add CBA PAGES 6 & & SMH 26 03 2020)
I would think if the government forced you stop trading it would be a force majeure, the landlord cops it sweet.
Plenty of major landlord leases do not have a force majeure clause.
Don’t need it written in the lease as you could argue that a precedent has been set.
From past force majours judges have become more reasonable. serfdom has been replaced with individualism.
Serfdom has been replaced by Social Media collective process by alarmists using over emotional individuals to create mass hysteria.
Wot? Huh?