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  1. #131
    Join Date
    Jun 2004
    Posts
    10,633

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    Quote Originally Posted by Malcolm1 View Post
    Hi Wayne,reading some comments from Law firms, they are advising tenants to pay full rent and communicate " without prejudice" about clause 27.5 & 27.6 if they have this type of lease. The clause has a section in there that requires the tenant to pay a "fair & reasonable proportion"of the rent & Opex? But then in the next paragraph they ask "what is fair & reasonable"? Plenty of grey areas around this clause,but communication is the key if possible and also the situation you are presently in vs the tenants ie; are they new tenants, do they have a 4-6 year lease and can you afford not to have them when we drop to level 2/1?
    Google clause 27.5 ADLS 2012 lease, if that is what your tenants presently have, some interesting commentary from the so called top law firms in NZ,good luck...!!
    I have looked into it.
    I have talked to my commercial tenant.
    We have come to a mutually agreeable solution.
    Luck not needed for me thanks.

  2. #132

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    We've had another request to extend the lower lease rate we agreed to during the pandemic. I'm of two minds about this, given that:
    a) None of their suppliers have offered special terms or pricing,
    b) We waived a lease cost review for the year,
    c) They have received 6 months of reduced lease (initial term + lockdown period) within a couple of years,
    d) Tenants have new finance options available to them, that they did not have before.

    Thoughts most appreciated. Including telling me if I'm being unreasonable!

  3. #133

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    Quote Originally Posted by Bradley View Post
    We've had another request to extend the lower lease rate we agreed to during the pandemic. I'm of two minds about this, given that:
    a) None of their suppliers have offered special terms or pricing,
    b) We waived a lease cost review for the year,
    c) They have received 6 months of reduced lease (initial term + lockdown period) within a couple of years,
    d) Tenants have new finance options available to them, that they did not have before.

    Thoughts most appreciated. Including telling me if I'm being unreasonable!

    Add to that list that they most probably received a substantial subsidy from the government to help during this crisis . That subsidy payout is supposed to go towards their costs to run the business which includes rents for both commercial and residential tenancies . This subsidy applies just as much to help those in residential tenancies especially so to those tenants that are self employed.
    Last edited by mrsaneperson; 06-06-2020 at 09:02 PM.

  4. #134

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    Quote Originally Posted by mrsaneperson View Post
    Add to that list that they most probably received a substantial subsidy from the government to help during this crisis . That subsidy payout is supposed to go towards their costs to run the business which includes rents for both commercial and residential tenancies . This subsidy applies just as much to help those in residential tenancies especially so to those tenants that are self employed.
    Yes, good point.

    Given we have cut the lease in half for 6 months, I think we'll decline on offering them any further reductions. The lease is actually one of the smaller of their monthly costs, with the lease of equipment being one of the highest aside from the usual wages, consumables etc.

  5. #135

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    Quote Originally Posted by Bradley View Post
    Yes, good point.

    Given we have cut the lease in half for 6 months, I think we'll decline on offering them any further reductions. The lease is actually one of the smaller of their monthly costs, with the lease of equipment being one of the highest aside from the usual wages, consumables etc.

    If you search the name of their business in the covid 19 subsidy search facility you can find out exactly what they received from the government .


 

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