13/04/2020
Who’s looking after who during this crisis ?
It’s going to be interesting to see how supportive commercial managing agents and the bigger property groups will be with their tenants over time, including many months of social distancing
The current crisis (CoVid 19 hibernations ) has a crippling impact on almost every retail & hospitality’s business right across the country.
Managing Agents draw their fees (their profit) in part from their Landlords via Outgoings, Gross rents & property inspections along with Leasing fees & transactional sales with the latter two almost obsolete in the current marketplace,
Therefore the challenge for Agents in all of this is to somehow keep Tenants & Landlord’s that have been closed or severely impacted ... serviced in light of possibly not receiving a fee for said service ... or at best a reduced fee ...!
How does this impact their tenants & landlords .... ?
That’s the multi million dollar question ... with many Agencies geared as per the Commercial Tenancy Act to demand what’s due & payable every month, despite the Government’s plea’s for common sense & negotiation .....
There is a challenge facing those agents that rely more on procedures and less on face to face meetings in the short term..
Not understanding the potential CoVid business impacts and issuing demands for payments is only going to throw lit matches into a tank full of petrol ...
The answers for each of these situations are many and varied and unfortunately there is not a one size fits all solution ...
That’s where the sense in finding common ground is essential!
But issuing formal demands during these times whilst procedural, it’s professionally disengaging and one way to further lose tenants, businesses and if empty shells are your landlords aim ....
issue away ...
How’s your Managing Agent stacking up ? ...
For your businesses sake, the Government is urging them to be lenient and functionally practical ... at best impacted tenants need engaging & supportive solutions
We don’t need to see reports or repeats of the demand emails issued to tenants by a prominent residential agency filtering through commercial agencies ...
Time will tell ... the sooner we have sustainable solutions the less stress on diminishing cashflows will be . Which In turn will assist retailers sustaining their businesses during hibernation ....
It’s Common sense .... isn’t it ?
Chasing every cent’s (sic) may not guarantee you to land the Dollar ? *
* Especially during an enforced hibernation ... or for those operating in diminished turnovers ...