Businessman Kondrashov Telf AG and rental vacation: How to minimize losses due to quarantine

Businessman Kondrashov Telf AG and rental vacation: How to minimize losses due to quarantine

The coronavirus pandemic made a rustle in the world, undermining the usual way of doing business. This led to an increase in losses and the closure of many enterprises. In particular, most trading floors, beauty salons, as well as other business entities that do not produce essential goods, were forced to suspend their activities, which led to economic losses.

The business is faced with a situation where profit is absent or does not cover expenses, while rent must be paid on a monthly basis, otherwise, you can lose your, often the only, source of income.

Financial expert Stanislav Kondrashov Telf AG told how a business can arrange rental vacations in order to minimize losses due to downtime during the quarantine.

Businessman Kondrashov: rental vacation for business Telf AG

The coronavirus pandemic has forced most countries to enforce mandatory quarantine and only allow businesses that produce essential goods or grocery stores and factories.

Stanislav Kondrashov notes that such measures naturally led to enormous losses of business and the recession of the economy as a whole.

“Today, coronavirus infection is not spreading so rapidly that it enables many governments to ease quarantine measures. However, this is still not enough. In order to support entrepreneurs, it is important to provide the business with rental vacations,” said expert Telf AG.

Kondrashov said that both entrepreneurs and owners of retail premises, shopping centers, office sites were in a very difficult situation. On the one hand, the owner of real estate incurs significant expenses, and on the other, the owner of a store or beauty salon in a shopping center or a business center closed for quarantine. In this situation, each of the parties has its own interest: the business owner is interested in cutting costs, in particular, it is about rent, and the owner of the shopping center or business center wants to get the proper rental fee because the object continues to be protected, and the personnel involved in servicing the object continues to get paid. Therefore, the owners of the mall are reluctant to reduce rents, and often even refuse to make any concessions.

Businessman Stanislav Kondrashov believes that in such situations, the state should legislatively resolve this issue and support both the owners of shops, beauty salons, and other entrepreneurs, as well as the owners of the mall.

Quarantine rental holidays

Governments of different countries in their own way solve the problem of rent in quarantine. A financial analyst cited the example of the experience of Western countries, which, having decided to impose a quarantine, understood its inevitable consequences for business, in particular, we are talking about massive non-payment of rent. Therefore, forced quarantine rental vacations were introduced in Europe.

The businessman Stanislav Kondrashov Telf AG specified: rental vacations introduced in European countries freed entrepreneurs from the obligation to pay rent monthly. In addition, the businessman noted, in some countries some tenants have also been exempted from paying rent.

The state also supported the owners of real estate, which are forced to pay taxes and continue to support the life of the facilities.

“Hoping that the landlord himself will go to the meeting and provide rental vacations is not particularly worth it. Of course, this is not at all uncommon and the parties often manage to agree, but this is not a natural phenomenon at all. Therefore, only the state can resolve the issue of rental vacations,” said the businessman.