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LETS GET DOWN TO BUSINESS.

Question :
Firstly, thank you so much for your help here. I run a small shared studio space. We have 25 desks, and over 1/2 of our tenants have pulled out (all small businesses, 1-4 people) as they are each facing financial hardship. I expect more will follow.My landlord has not yet offered any form of rent holiday, even after a skype session & emails requesting that he assist in keeping our business alive. What would you suggest is the next best means of escalating this issue, and raising the fact that without his support we will soon be in a position where we have to vacate the lease (still 3 years left on our current lease agreement). Thanks,

Question submitted 16/04/20 @ 02:03pm
Industry: Services
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  • Afternoon

    Have you reviewed your contract, (assuming it maybe standard Auckland Law Society), if I recall clause 27.5. Suggest you discuss with your own lawyer drafting a letter. If you don’t have a lawyer, its possible you may get assistance from Citzens Advice Bureau, as they generally have a legal contact.

    You need to send a formal letter and request, reference your conversations. So your bank and other can see you have formalised the request and actions.

    Regards Andrew

    I’m no expert here but agree with Andrew that you need to document everything and put your situation and proposal in writing to your landlord.
    If you are still in dialogue with them I would express to them that you are sending a letter and that you need them to consider how this will play out.
    They can either help you trade through this situation (est. ~3 months from lock-down to possible return to offices) and on the other side they still have a tenant who will always appreciate the compassion shown and assistance provided in this tough time OR they can contribute to an avoidable early termination and have a space that it may take them a lot longer to fill.
    Assuming they in turn have financial commitments on the premises then at the very least they should be prepared to have a chat with their financiers about providing them with some relief so all parties can achieve a longer term win-win outcome.
    Hope that helps…all the best!

    Same problem here (although only a year before right of renewal on our lease). I too am keeping copies of communication and last email was assuring them I would pay April’s rent but that we needed to have a conversation about clause 27.5 before May’s rent was due. I haven’t had a reply as yet.

    I have shared this email from a coworking space in the US with the same problem as us. It gives a pretty good outline of what may be useful to write. https://dangerouslyawesome.com/2020/04/landlord-covid19

    Hope it helps.

    Sorry, if not clear, that hyperlink is to the rent relief email advice. 🙂

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