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Real estate association highlights issues facing industry

Many of the businesses that lease properties have seen their turnover drop by 50 per cent and more, according to an industry group.

Real Estate Industry Association vice president Mike Quinn mentioned that most large businesses had their own premises but the small ones had to lease.

“Generally, where a business has been able to clearly show that they have been affected and experienced a downturn in trading, the property owners negotiate short-term rental relief for their tenants,” he said.

“In most cases, this is only for the duration of the state of emergency and it is to be reviewed when it is lifted.”

Quinn said some opportunists had claimed significant rent relief when they had only been lightly affected.

“The amount of rent relief varies from owner to owner and also from tenant to tenant depending on their individual circumstances,” he said.

“Generally, it’s the length of time the tenant has been in a particular building, how regular they have been in the past with paying their rent, how well they have looked after their rented area etc.”

Quinn said owners generally wanted to keep good tenants and would do what they could to keep them.

“Tenants that cause problems are not likely to be looked after to the same extent,” he said.

“Some banks are offering to assist clients that are struggling and those with mortgage repayments to meet are able to seek help with the deferral of loan repayments. This then helps property owners to pass on rent relief when necessary."

“Generally, if a place is vacant, it means that the tenant has vacated and, in most cases, the owner will not be receiving rent even if there is a lease. Most property owners are not that harsh on their tenants.”

Source: https://www.thenational.com.pg/real-estate-association-highlights-issues-facing-industry/

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