FLEXIBILITY NEEDED TO SAVE SMALL BUSINESSThe Gosford Erina Business Chamber is calling for flexibility to be applied to business when it comes to commercial rents across the Central Coast.
This action is aimed at assisting to saving small to medium business operations that are doing it tough right now with the current restrictions and business declines directly related to COVID-19 (Coronavirus).COVID-19 has and will continue to impact on business viability across the region. Whilst the government and big bank lenders are offering flexibility on many repayments, now is the time for landlords to show support of business to their tenants in order to keep business on the Central Coast open.
Rod Dever, President of the Gosford Erina Business Chamber said "the GEBC is calling on landlords and managing agents to apply a level of flexibility when it comes to rental payments. Their direct support could influence the decision for a business to remain in operation or force to close and cease operations" said Mr Dever.Business is experiencing an unprecedented downturn to a level never seen. Landlords who can make rental concessions would benefit by keeping their existing tenants in place. This would be assisting them to be better positioned to survive the current decline and come back to operation in the future. Where a business is forced to close, the service they offered in the local market could be lost.
"The cost of attracting new tenants is estimated to be 5 times greater than working to retain an existing established tenant so overall it may be in landlords' better interests longer term to work with their existing tenants on a tailored support package."Landlords have the cost of attracting new tenants which usually includes rent free periods for fit out and set up, in addition to advertising and legal fees". This support would assist business sustainability over this difficult time but would also generate a stronger relationship between tenants and landlords.
Business operators are also encouraged to talk with their landlords to keep up to date on impacts to their business. Communication between the tenant and the landlords will be key in this process.
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