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Commercial Landlords during COVID-19 pandemic

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  • 17-04-2020 2:37pm
    #1
    kormak
    Registered Users Posts: 887 ✭✭✭


    Hi Folks,

    I'm just throwing this out there as I'm curious about the legalities.
    We have an office rented/leased in a digital hub with many other offices.
    When the current pandemic occurred, we wrote to the office manager requesting some form of a rent freeze or moratorium as we've essentially moved our office back home for possible months.

    He eventually came back and provided us with an application form which the board want everyone to fill in, if they want their rent reviewed (no guarantee they will get it either). The problem is they're asking all sorts of confidential information in this document: monthly turnovers, forecast, contracts lost/reduced/put on hold, what state support you've received, finance measures taken with banks, etc... Like they literally want to know what we had for breakfast.

    The problem we have with this is that apart from this being very confidential information, many of the board members are clients of ours! some of them owe us money and some are competitors for the same contracts. This to me is a huge conflict of interest.

    So it leaves us with 2 choices; accept no rent freeze and keep paying rent for an empty office or submit this information.

    Is this illegal what they are doing or are they well within their right to request such confidential information?

    TIA


Comments

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    #2
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    They can ask but you don't have to give it. They don't have to reduce the rent though either.

    The problem is there is no way of knowing if somewhere is in genuine need, or trying it on and not affected at all.

    Do you need to keep the office at all?


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    #3
    kormak
    Registered Users Posts: 887 ✭✭✭kormak


    beauf wrote: »
    They can ask but you don't have to give it. They don't have to reduce the rent though either.

    The problem is there is no way of knowing if somewhere is in genuine need, or trying it on and not affected at all.

    Do you need to keep the office at all?

    I think we're going to hand in our notice. Just was curious about the legalities (or even the moralities) of this. Seemed a bit OTT.


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    #4
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    You can't ask legal advice on boards its against the rules. But isn't it common sense way they would ask.

    They probably haven't realized that its commercially sensitive information.


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    #5
    kormak
    Registered Users Posts: 887 ✭✭✭kormak


    beauf wrote: »
    You can't ask legal advice on boards its against the rules. But isn't it common sense way they would ask.

    They probably haven't realized that its commercially sensitive information.
    Apologies, I wasn't sure where to put this thread and I'm not really asking for legal advice, just advise on the rights/wrongs of this situation. Also, surely anyone can accept that is commercially sensitive in formation.?


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    #6
    beauf
    Closed Accounts Posts: 22,651 ✭✭✭✭beauf


    Never worked in a digital hub or incubation place, so never dealt with those managing it.

    Have worked with people with offices in those place and I know there's a lot of collaborative projects, but compete on others.


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    #7
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    Just stop paying them. Negotiate the arrears after

    Your credit will be shot but protect your cashflow now.


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    #8
    Peregrinus
    Registered Users Posts: 26,141 ✭✭✭✭Peregrinus


    kormak wrote: »
    Apologies, I wasn't sure where to put this thread and I'm not really asking for legal advice, just advise on the rights/wrongs of this situation. Also, surely anyone can accept that is commercially sensitive in formation.?
    Yes, it is commercially sensitive information. On the other hand, everything to do with a business's financial situation is commercially sensitive information, and if you are seeking a rent freeze/forearance/reduction/other concession on the basis that you are in a stressed financial situation, you're the one who is raising your financial situation, not them.You can't really ask for favours on the basis of your financial needs, and then be surprised when they seek details on the nature and extent of your financial need.

    There are, at least in theory, ways around the problem. For example, you could try and agree that you will submit the information to some neutral third party - a firm of accountants, maybe - who will then provide a report to the landlord on your financial situation while withholding much of the detail. Someone would have to pay the accountants, of course.


  • Options
    #9
    touchdown77
    Registered Users Posts: 208 ✭✭touchdown77


    kormak wrote: »
    Hi Folks,

    I'm just throwing this out there as I'm curious about the legalities.
    We have an office rented/leased in a digital hub with many other offices.
    When the current pandemic occurred, we wrote to the office manager requesting some form of a rent freeze or moratorium as we've essentially moved our office back home for possible months.

    He eventually came back and provided us with an application form which the board want everyone to fill in, if they want their rent reviewed (no guarantee they will get it either). The problem is they're asking all sorts of confidential information in this document: monthly turnovers, forecast, contracts lost/reduced/put on hold, what state support you've received, finance measures taken with banks, etc... Like they literally want to know what we had for breakfast.

    The problem we have with this is that apart from this being very confidential information, many of the board members are clients of ours! some of them owe us money and some are competitors for the same contracts. This to me is a huge conflict of interest.

    So it leaves us with 2 choices; accept no rent freeze and keep paying rent for an empty office or submit this information.

    Is this illegal what they are doing or are they well within their right to request such confidential information?

    TIA




    A friend of mine is in the same situation and has been asked to submit 3 years accounts, detailed profit and loss account for current year and copies of VAT returns.

    He thinks its completely over the top but doesn't know if he's obliged to supply or can the government lockdown not give sufficient proof of non use of the premises.


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    #10
    kormak
    Registered Users Posts: 887 ✭✭✭kormak


    We ended up pushing back and told them there was too much conflicts on interests to be releasing such information + it was completely over the top... they reneged and instead offered us a reduced rate for the next few months to retain the office.


  • Options
    #11
    SIX PACK
    Closed Accounts Posts: 1,007 ✭✭✭SIX PACK


    Just Cancel your Payments No point paying for a premises that you cannot use. Let the Greedy Landlords Sing for their money. As the Government says were all in this together so it will be at least August before it's safe to Return to Work + their will be plenty of Office Space available & 50% Cheaper than your currently paying by the time this Lockdown ends


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