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I have two commercial leases. Neither landlord is offering a break. Construction is stopped due to government mandate. There is no bailout from the state due to

I have two commercial leases. Neither landlord is offering a break. Construction is stopped due to government mandate. There is no bailout from the state due to this intervention. There is a high liklihood of mass layoffs and potential bankruptcy. I'm past the point of annoyance or despair. I've gotten used to the fact that not only do governments do whatever they want, but people like authoritarian action and don't care about externalities.

ska 7y ago
I don't know how the details will actually shake out but the Canadian government this week announced a commercial rent program that seems to make sense. If I understand it correctly basically you pay 25%, your landlord eats 25%, and the remaining 50% is split somehow between federal and provincial funds. It will be interesting to see how it actually plays out (and now long it lasts) but it seems pretty practical, given the situation.
weq 7y ago
My first tenant's mum was one of the first wave effected in China. He broke his lease to go back and be with her. I then leased to another person, small buisness owner, who was shut down the week she moved in. I let her break her lease. The best i can do in this situation is get a loan holiday for my mortage from my bank. But i dont get anything for free, i will need to pay it back, plus interest. The small and medium guys are taking the big hits. The big guys are liquidating to protect investors. And everyone in between is fighting over the scraps. I believe in karma. When i say we are in this all together, i mean from a civilization perspective, if only 5% of the worlds population has cash at the end of this, that cash wont mean much. Entire nations wont just fade away. Something has to give.
mikeg8 7y ago
Can you lay out the chain of events you imagine (or have been told ) will occur for refusing to pay your leases, or at least pay in full? I’m genuinely curious what would happen if you say, “sorry, not paying.” beyond an eviction. It seems like if eviction is the only consequence, it may be worth considering a partial payment as I’d imagine the prospects of replacing you as a tenant are near zero in the short term. (Obviously I’ve never signed a commercial lease so please excuse my lack of knowledge on the terms)
- icelancer 7y ago
  Eviction and destruction of credit history and them coming after my house since the leases are personally guaranteed (which might happen anyway). I also run a business in Seattle. Finding a new tenant will be no sweat at all even during the COVID times.

ska 7y ago

I don't know how the details will actually shake out but the Canadian government this week announced a commercial rent program that seems to make sense. If I understand it correctly basically you pay 25%, your landlord eats 25%, and the remaining 50% is split somehow between federal and provincial funds. It will be interesting to see how it actually plays out (and now long it lasts) but it seems pretty practical, given the situation.

weq 7y ago

My first tenant's mum was one of the first wave effected in China. He broke his lease to go back and be with her. I then leased to another person, small buisness owner, who was shut down the week she moved in. I let her break her lease. The best i can do in this situation is get a loan holiday for my mortage from my bank. But i dont get anything for free, i will need to pay it back, plus interest. The small and medium guys are taking the big hits. The big guys are liquidating to protect investors. And everyone in between is fighting over the scraps. I believe in karma. When i say we are in this all together, i mean from a civilization perspective, if only 5% of the worlds population has cash at the end of this, that cash wont mean much. Entire nations wont just fade away. Something has to give.

mikeg8 7y ago

Can you lay out the chain of events you imagine (or have been told ) will occur for refusing to pay your leases, or at least pay in full? I’m genuinely curious what would happen if you say, “sorry, not paying.” beyond an eviction. It seems like if eviction is the only consequence, it may be worth considering a partial payment as I’d imagine the prospects of replacing you as a tenant are near zero in the short term. (Obviously I’ve never signed a commercial lease so please excuse my lack of knowledge on the terms)

icelancer 7y ago
Eviction and destruction of credit history and them coming after my house since the leases are personally guaranteed (which might happen anyway). I also run a business in Seattle. Finding a new tenant will be no sweat at all even during the COVID times.