It is disappointing seeing some landlords ignoring the code of conduct agreed by the national cabinet. I have seen information requests from individual landlords and big business landlords asking retail tenants for all manner of information outside what is covered in then national code.
- One claimed that the tenant was not a small business, even though it clearly is.
- One asked for accountant certified P&L.
- Another asked for details of all state and federal support received by the business before they would even enhtertain a discussion.
- One asked for personal financial details.
- One asked for the details of every employee and the JobKeeper amount the business would receive by employee.
These are some examples of what landlords are asking for.
The code: NATIONAL CABINET MANDATORY CODE OF CONDUCT – SME COMMERCIAL LEASING PRINCIPLES DURING COVID-19 is very simple. The obligation on tenants and landlords straightforward.
It is frustrating seeing landlords abuse the process by seeking information that is not relevant, not any of their business.
Clearly some landlords are not complying or rather trying to do things on their terms either way unnaceptable to the Code.
in some leases the Landlord can ask for an Accountant’s prepared P&l as Accountant’s don’t guarantee P&L’s they in fact go to great lenghts in their Disclaimer of this.
Landlord’s do ask for the Accountant’s Lodged Profit and Loss and some have the right to inspect the Businesses’ books This would be in the lease if it is the case.
The leasing Act veries State by State as mentioned in this very informative “Code f Conduct” release.
It’s an excellent article by Mark pointing out the conduct of some and by suppltying you with this very important guide especiallt the repayment program by negotiation etc. Some tennats believe (falsely) that the 50% reduction is a “gift” and not repayable.
Asking about what support they have gotten is legitimate question because the code relies the business being in financial hardship and being eligible for some support with revenue requsistes, especially Jobkeeper, gets over the first hurdle and makes the code applicable.
Unless the tenant already reports sales figures the landlord has no basis to gauge how impacted the tenant is. There are tenants trying to exploit landlords and shopping centre income isn’t what it used to be. The smart landlords will realise that any empty spaces aren’t going to be filled anytime soon at current rents, so best to look after current tenants or risk massive reduction in centre values when they have to sign new leases at lower rents, assuming they can even find new tenants.
The worst examples I have seen are where tenants provide revenue figures on a monthly basis and have done so for years now being asked for different data. It’s like the landlords are keen to introduce a hurdle greater than is it was a simple year on year revenue comparison test.
In terms of asking what government support has been accessed, they have not sought details on the operating costs side, only the government support.
I am seeing too much evidence of landlords misbehaving.
I agree Mark, there is game being played out there by some Landlords of the Big end Centres. they have as you state the monthly figures and continously the new figures any proof of the new ones are obvious with one glance at the closed shops in these centres. The chains smiggles, Just Jeas etc are standing up to this because they can the indie doesn’t have this power yet all are treated the same. An independent Landlord halved the rent of a newsagent close to where I live for the next 2 months The 50% reduction was without any investigation whatsoever The landlord said he thought it only fair considering etc.
Graeme, I’ve certainly heard good news too. 50% reductions are common as are 100% rent holidays for a month or two. I got 75% off for one of may shops a couple of weeks ago.
The bigger the landlord the less likelihood of even a discussion at this point from what I am seeing. I suspect this will frustrate the members of the national cabinet as they felt they had determine settings that would feed to greater fairness.
The repayment programme will be interesting. This will be the next hurdle.