Here is a list of information requested by some retail tenancy landlords, including some shopping centre landlords where tenants have registered for JobKeeper, advised they qualify for JobKeeper and provided retail turnover data (in the usual format supplied to the landlord) showing declines of between 30% and 75%. Landlords have asked for information prior to opening discussions on rent.
Note: the list is not from the one landlord.
- Business bank statements for the last 2 years.
- Personal bank statements for the last 2 years for all business owners.
- Tax returns for the last 2 years, certified by your accountant.
- BAS statements for the last 2 years.
- A personal assets list for each owner or shareholder for the business.
- A full stock listing showing age and value of all stock.
- A list of all other businesses you own.
- A list of all other retail tenancies you have.
- Details of all state and federal government COVID-19 related funding and or grants you have applied for.
In my view, landlords have no right to this information. The CODE OF CONDUCT agreed by the national cabinet is clear. If a business applies and meets the criteria for JobKeeper, their lease falls within the details of the code.
The only data points that matters are comparative revenue. This can be provided in the form that has been used for years with most landlords. Their request for it in a different form is not part of the done. Indeed, I suggest that any such request is outside the good faith goals of the code.
I think it is critical that retailers advise state and federal politicians when their landlords seek information outside the code, like any of the information on the above list. At the time of advising politicians, I also suggest advising the office of federal small business and family enterprise ombudsman, the shopping centre council of Australia, the treasurer, prime minister, premier / chief minister, local small business commissioner as well as your local council.
Landlords and tenants have clear obligations under the code. From what I am seeing, too many landlords are misbehaving in their requests for information. I doubt this is due to ignorance. I think it is to create a barrier to providing financial relief to tenants. If it continues, more retail businesses will close for good.
This is appalling behaviour by these plandlords Mark and I absolutely agree with your advice. I further suggest that the effected members of our channel also contact our industry associations to lobby the Federal Small Business Minister on the issues. These landlords should be publicly named shamed.
Remember too that the new code provides the tenant with a great deal of protection with no evictions for a 6 mth period. If a landlord is not willing to negotiate fairly I would be immediately dropping my rental payments by the same percentage as my drop in turnover but remember that 50 per cent of such a cut may only be deferred.
Unbelievable conduct.This needs to go to air -radio -T.V. and Local M.P. Mark they don’t have a right for this information -their rights are those clearly stated in the lease between them and those parties that have signed. Next they may have the rights to the same Code of Conduct rights as the tenant however for their side of the equation.
the information they have demanded here is one that only the Bank could ask for on a case by case basis and one that is strictly confidential for both the landlord and the tenant if the individual Bankers had cause to assist either party.
This is proving to be a lesson in dealing with landlords as a whole.
Steve, fairly, negotiate fairly is the key maybe as suggested in Mark’s blog the ombudsman should be asked, what is Fair? under these circumstances. There needs to be an arbiter.
There is considerable work being done on this behind the scenes nationally not only for our channels but for other SME retail channels.
The information I am sharing on this blog feeds into that in that the blog is highly ranged by Google and topics I cover appear high in search results.
Great, good to know.
Three more landlords have asked this weekend for personal asset details and more – way outside what the code says is necessary. These landlords need to be held to account. It could be time to name and shame.
They are not acting in good faith prescribed by the code. They should only be verifying the yoy revenue decline.
I agree Anthony. Their behaviour is reprehensible and absolutely outside the code. A consequence is an impact on the mental health of tenants – lives are suffering because of their gross overreach.