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 Hi do u give discount to your tenant?

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beleebala
post Mar 26 2020, 10:46 PM

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QUOTE(icemanfx @ Mar 26 2020, 10:51 AM)
for non commercial/business tenancy, 50% discount during mco period is fair and appreciated.

for commercial, it will depends on how much the landlord want the tenant to survive and stay. if landlord don't offer discount or waiver and tenant couldn't afford to pay is lppl.

at current market sentiment, most tenants will/should take the opportunity to negotiate for cheaper rental for the rest of tenancy period.
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I agree. If the tenant goes out of business, the landlord would lose rent and possibly get involved in a lawsuit, which would cost him/her more $ and trouble. How would a landlord choose between a) getting 50% rent for a year; or b) losing total rent until you get a new tenant, with cost and trouble for a lawsuit, commission fee and other costs for a new lease?
beleebala
post Mar 27 2020, 03:46 PM

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QUOTE(Zwean @ Mar 26 2020, 10:39 PM)
The rest of the tenancy period?

You overestimate the tenant's bargaining power.
If my tenant requests for a 50% rent discount for the rest of the year. I will serve 2 months notice to them.
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Sure, if you can find a new tenant in a few months and able to not lowering the rent in the new lease. The bargaining power of the tenant does not matter. What matters is your overall rental income in the next 12-24 months.
beleebala
post Mar 31 2020, 11:58 PM

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QUOTE(Iroquois Plissken @ Mar 29 2020, 05:45 PM)
Guys, mind giving me your opinion on my tenant (commercial property). A bit long, so please bear with me!  notworthy.gif

He's been renting since 2014 and was always on time with rent, however this year his business (phone and computer repair shop) has taken a hit and has been late with rental since January. Last month he missed the due date and I had to call him after 2 weeks wondering where the rent was. He asked to pay half with the balance later. Since he was an exemplary tenant I told him he can pay the balance next month (which is this month) under the assumption that March rental will be paid along with it.

He did ended up paying the balance, but didn't paid this month's rent (which was due even before the lockdown) and has been avoiding my texts. I finally got trough him today and he told me that all surrounding tenants are getting a 50% discount so he's asking me if I could grant him the same leeway.

I told him I would have given him a nice discount had he had been more proactive with the situation and not waited until I called him (and ignoring my texts). I gave him one last chance to come call me back by the end of this month to come up with a better proposal (I can't afford to give 50% discount for the next 6 months as rent is my main source of income).

I consider myself a fair guy. I scolded him for not being proactive and also praised his past record. I told him it was extremely upsetting that he has been avoiding paying the rent and my texts since I already called him last month saying that if he has problems, he is free to CALL ME and talk it over. What do you guys think and what kind of compromise should I reach with this dude?
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Can you get a new tenant with at least 80% of the current rent within 4 months? If you can, kick the existing tenant out; a short pain is better than a long pain. If you cannot, why not giving your existing tenant a 50% discount for 6 months?
beleebala
post Mar 31 2020, 11:59 PM

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QUOTE(Iroquois Plissken @ Mar 29 2020, 05:45 PM)
Guys, mind giving me your opinion on my tenant (commercial property). A bit long, so please bear with me!  notworthy.gif

He's been renting since 2014 and was always on time with rent, however this year his business (phone and computer repair shop) has taken a hit and has been late with rental since January. Last month he missed the due date and I had to call him after 2 weeks wondering where the rent was. He asked to pay half with the balance later. Since he was an exemplary tenant I told him he can pay the balance next month (which is this month) under the assumption that March rental will be paid along with it.

He did ended up paying the balance, but didn't paid this month's rent (which was due even before the lockdown) and has been avoiding my texts. I finally got trough him today and he told me that all surrounding tenants are getting a 50% discount so he's asking me if I could grant him the same leeway.

I told him I would have given him a nice discount had he had been more proactive with the situation and not waited until I called him (and ignoring my texts). I gave him one last chance to come call me back by the end of this month to come up with a better proposal (I can't afford to give 50% discount for the next 6 months as rent is my main source of income).

I consider myself a fair guy. I scolded him for not being proactive and also praised his past record. I told him it was extremely upsetting that he has been avoiding paying the rent and my texts since I already called him last month saying that if he has problems, he is free to CALL ME and talk it over. What do you guys think and what kind of compromise should I reach with this dude?
*
Can you get a new tenant with at least 80% of the current rent within 4 months? If you can, kick the existing tenant out; a short pain is better than a long pain. If you cannot, why not giving your existing tenant a 50% discount for 6 months?

 

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