Pay 50% rent till September, new offer from landlords
Pay 50 per cent of the monthly rent till September and if situation doesn’t improve then till December. The new offer from landlords are in market so as to survive the downturn due to COVID 19.
By Varun Singh
The impact of lockdown is visible on the rental market of the city. With most landlords willing to let go 50 per cent of rent till September.
Many tenants are unable to pay rents, and instead of empty shops, many landlords have asked tenants to pay 50 per cent rent. This for existing tenants is applicable from the start of lockdown to September.
Rishi Dusija, a realtor from Bandra, says, “A high profile brand shop at Carter Road, informed the landlord that they won’t be able to pay any rent. There are many such shops were the tenants aren’t able to run their businesses like earlier. Thus landlords have relented,” said Dusija.
According to Dusija, most landlords are content for time being if the tenants pay 50 per cent rent for some time.
“This offer is being made available for both existing and new tenants. For existing tenants the landlords are ready to accept 50 per cent rent till September from the start of lockdown. For new one they are willing to give them the 50 per cent waiver till September,” he said.
Many landlords are willing to extend the waiver till December if things do not improve till December.
The market situation has turned so bad, that landlord are now extending and olive branch to lessees, and offering short term discounts to kickstart commerce.
Even lawyers say that new agreements are being written down where both tenant and landlords end up happy.
Adv Prakkash Rohira, says, “Owners are offering various discounts and offers on initial months of the agreement. However, the intent of both parties must be clear and explicitly made in the negotiation and accordingly recorded in the agreement.”
Lawyers say for existing leases, litigation and disputes are inevitable until amicable settlement terms are adopted and arrived at.
Rohira says, “Many owners have extended support and have resorted to negotiating of ongoing rentals due to lockdown. However enforcing a minimum performance of lock-in and assurance of paying timely rentals.”
Brands also are suffering because of the lockdown as shops are closed. However, only the landlord cannot be expected to suffer losses.
In most cases both tenant and landlords are agreeing on amicable terms to survive in the market. Because a landlord knows earning something is better than keeping his premises vacant. At the same time tenants are aware they have to survive and need place to carry on business.
Also Read: Rent agreements to have lockdown clause too