Coronavirus outbreak has dealt a huge blow to people having rental incomes. Due to closure of businesses amid the lockdown, a large number of tenants have urged their landlords to waive of rent during the lockdown period and reduce rent for the future.
In some cases, landlords have agreed to bail out their tenants by deferring the payments for this period. Meanwhile, real estate agents are forecasting that rentals are likely to come down by 15-30% and a majority of the old rent agreements will be re-negotiated between the tenants and landlords.
A senior citizen from Pakhowal Road, who has rented out three shops, said, “One of my tenants with a travel agency has requested me for a rent waiver for March and April. But since I depend on rental income for my livelihood, I have asked him to pay the amount in installments after April 30. My other tenants have also sought reduction in rent, citing losses but I am yet to take a call.”
Sukhjeet Chawla, a property dealer based in Model Gram area, said, “The current scenario is very grim for the property market be it sale, purchase or letting out property. A huge slump will be seen in the coming days. Rental incomes will take the worst hit and its certain that rentals will come down by 15-30% everywhere.”
“Businesses like garment showrooms, jewellery, home furnishing etc are not going to pick up for the next few months. Already several of my clients who have their rented showrooms in posh areas have asked me to either get the rentals re-negotiated or find cheaper alternative. Same is the case with residential properties too.”
In addition to the commercial and residential segment, people running industrial units on rent are eyeing reduction in rents too. Sachin Khosla, who is into printing and packing business, said, “We are already suffering huge losses. Besides paying advance wages to my workers, I also have to make other payments like minimum charges for electricity and other bills regardless of this shutdown. In view of all these factors, I have already requested the premises owner to waive off the rental for the entire lockdown period, but he has not taken a decision in this regard.”
