Paul Bibby
Dozens of small business owners across the Shire are being offered rent-free tenancies by their landlords to help them weather the COVID-19 crisis.
As government regulations protecting tenants from eviction come into effect, many local property owners have already gone on the front foot, offering up to six months rent free.
‘Numerous businesses have been offered free rent for three months and sometimes longer,’ Gail Fuller of Scot Fuller Real Estate said.
‘I was just talking to a business owner this morning – he’s been given free rent on a month-by-month basis.
‘I think the key is that people are communicating. Everyone’s financial situation is a bit different in terms of what they can afford, so it’s about coming to an arrangement that works for both parties.’
But not all landlords have been so forthcoming.
The owner of one local business said that his landlord was non-committal when asked about a rent waiver.
‘They said they wanted to wait and see what the government said,’ said the business owner, who asked not to be named.
‘I’m not too happy about it to be honest.
‘I mean I can see it from the landlord’s perspective, particularly if they’ve got a mortgage to pay.
‘But I think landlords are generally in a better financial position than tenants.
‘I think at the end of the day, people need to act with a bit of heart and help out if they can.’
A number of business owners contacted by The Echo pointed out that it was in the interests of landlords to offer at least three months rent-free, so that when social distancing restrictions were eventually lifted, they had a tenant who could start paying rent again.
Drop in demand
‘If you lose your tenant there probably aren’t going to be a hundred other small business owners knocking down your door to rent it, even if it’s 12 months from now,’ said one owner, who also asked to remain anonymous.
‘Better to keep faith with your existing tenant and so you’ve got someone there when things pick up again.’
Meanwhile, COVID-19 has also had a significant impact on the residential tenancy market.
Residential tenancy
Ms Fuller said that many landlords were reducing rents by around $50 to $100 a week on houses and cabins, while a handful were waiving rents altogether.
She said a large number of long-term rental properties were also now coming onto the market as the demand for short-term holiday lets plummeted.
‘To give you an example, the real estate photographer we use said he had taken pictures of 15 different rental properties in the past week alone,’ Ms Fuller said.
‘Prior to that he was doing about one a month.’
‘If you’re a landlord, my advice would be to speak to your tenant – start having the conversation. Some people will have no difficulty continuing to pay, others will need a little help.
‘This is a small community and we’re all in this together.’
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