Landlords offer rent relief to tenants
More than 75 per cent of retail tenants have been offered some form of rental help from landlords but many have not accepted it, retail property owners say.
The results of the survey follow Minister of Small Business Stuart Nash’s telling property owners to ‘‘step up’’ with rent relief for their tenants using Government support packages for businesses.
The New Zealand Council of Retail Property (NZCoRP) said it had polled its members, which include many of New Zealand’s largest retail property owners, and found that more than 75 per cent of their 5000 retail tenants had been offered some kind of rental assistance.
NZCoRP represents some large landlords such as mall owners as well as smaller retail property owners.
It has also found itself up against several other large retail and business organisations, like Business New Zealand, the Auckland Chamber of Commerce and Retail NZ, concerned many businesses have not been able to secure meaningful rent and outgoings relief from their landlords.
‘‘We are concerned about any misperception that landlords are not supporting tenants at this time, particularly in the retail sector. This is simply not true,’’ NZCoRP chair Campbell Barbour said.
Landlords were offering a postponement of rent or reductions or a combination of both.
The amount of help was about 50 per cent of the rent as either a deferral or reduction or a combination of those.
‘‘Our survey shows that almost all tenants have sought some form of rental assistance directly with their landlord.
‘‘To date, around 75 per cent have been presented with a formal offer of rental assistance, with property managers reporting they were working through remaining negotiations.
‘‘Less than half of all tenants have accepted the offers made by
‘‘We are concerned about any misperception that landlords are not supporting tenants at this time, particularly in the retail sector. This is simply not true.’’
Campbell Barbour
NZCoRP chair, above
landlords for rental assistance.
‘‘Many have indicated they are waiting to see if the Government will come to the party, particularly for smaller to medium-sized businesses,’’ Barbour said.
A week ago, Justice Minister Andrew Little indicated the government was considering rent concessions to ease the burden from the restriction on trade on small businesses, but had ruled out rent subsidies or freezes.
In a statement to RNZ, Little said: ‘‘The government is now actively considering measures under which parties to a commercial lease would be expected to consider rent concessions in whole or in part for a period where the response to Covid-19 has had a material impact on a business.’’
Auckland Chamber of Commerce chief executive Michael
Barnett and Business New Zealand chief executive Kirk Hope have backed a commercial leasing code of conduct to force landlords and renters facing financial difficulties to negotiate.
More than half of tenants had not paid a cent under their lease in April, and early indications showed that this was likely to continue this month, Barbour said.
The vast majority of their retail landlord members had no contractual obligations to provide the rental support but had responded in good faith offering to defer, reduce or manage rental payments over this time.
Property owners were ‘‘carrying the can’’ for rent due to them when the situation was caused by the Government decision to restrict retail trade under alert level 3.
Less than a quarter of tenants had not been offered any rental assistance.
Most of these were larger corporations or were essential services continuing to trade.
‘‘The range of negotiated outcomes goes to highlight how the different circumstances exist across our industry and the difficulties in attempting to apply a one-size-fits-all approach.’’
While individual negotiations were confidential between parties, the survey snapshot provided a broad overview of the progress of the sector.
‘‘This situation is not of property owners or their tenants making.
‘‘Property owners should not be expected to carry the can for rent due to the Government’s ongoing call,’’ Barbour said.