Restaurants claim to be on the brink of survival: in exchange for discounts on rent they received unusual requirements

The president of the LVRA, Evalda Šiškauskienė, quoted in the report, is surprised that the owners (shopping centers, business centers or individual outlets) do not understand that the shopping center is attractive and valuable not mainly because of the facilities, but for vibrant, high-quality and diverse services.

“In the second half of the quarantine and after it, there will be a wave of bankruptcies of companies that operate in commercial and business centers, and the centers will be left empty by their imagination that the premises themselves create added value. Crises require a tripartite effort and solidarity, between governments, tenants and owners. The measures during the first quarantine made it possible to achieve this solidarity and most of the companies survived, unfortunately, currently the situation is the opposite, ”says E. Šiškauskienė.

According to her, the first signs of the recession appeared as early as February, when some tenants began to turn to landlords to share the losses, that is, reduce the rental price, because there were clear predictions that companies would start operating at a loss. .

At the time, only a few homeowners agreed to show solidarity and reduce the tax, and some made even more discounts than requested. However, the vast majority of owners, especially large ones, said that nothing happened or promised to monitor, discuss, etc. The situation did not change even after the start of the quarantine and the cessation of some activities, mainly related to entertainment, tourism, restoration.

E. Šiškauskienė states that only after the state announced the joint and several reimbursement of the rent and related expenses (the state reimbursed 50% if the landlord reduced the rent by at least 30%, and the remaining 20% ​​remained paid by tenants who lost most of their income). , the owners no longer had a choice and almost all gave 30 percent. or higher discounts for the quarantine period until May 31.

Discounts ended as soon as the summer started – it was explained that the market had recovered, the number of visitors to supermarkets had increased, etc. In exchange for new discounts in the summer, higher commitments were required: paying off all debts, extending the terms of contracts, increasing deposits, etc.

“Unfortunately, in September, and especially in October, sales fell drastically again, and with them the solidarity of many owners. The blind declaration of the provisions of the lease was initiated that the tenant, regardless of the market situation, must pay the rent and other taxes.

I really don’t want to generalize and say that all landlords seem short-sighted and don’t understand that their rental business depends on the viability of their tenants. “Some of the shopping and business centers, realizing the situation of the tenants most affected by Covid-19, have made their commercial conditions as easy as possible,” said the head of the association.

However, this fall, according to her, in exchange for discounts in the market even more ingenious requirements were extended: including in the contracts a unilateral termination clause of the lease without fault of the tenant, penalties, as well as requirements to pledge the property in favor of the owner and others. Some landlords simply refused to give a discount, explaining that they were not responsible for the tenants’ business, or without arguing at all.

At the end of the period in which rental bills could be submitted for INVEGA compensation, there were claims to pay the full November rent or even a December advance. Owners have made such demands even on businesses that were severely restricted or did not exist for most of the month.

E. Šiškauskienė asks not only to return the support applied during the first wave, but also to make known the malicious owners, who do not engage with the most affected companies.