Since the tenant`s gross turnover has a direct impact on the amount of monthly rent to be paid to the lessor, landlords would generally ask tenants to provide financial reports on their gross turnover, or even implement a point-of-sale system dictated by the lessor, allowing landlords to track the tenant`s sales on a daily basis. Such figures must be provided within a fixed period, failing which the lessor would be entitled to lump sum damages, or even to an immediate forfeiture of the tenant`s deposits. In some cases, the lease agreement would also provide that in the event of a discrepancy between the actual gross turnover and the amount presented to the lessor, whether through negligence or other means, the lessee would also be liable for damages vis-à-vis the lessor. In addition, the tenant`s accounts and records, including invoices, supporting documents, orders, may also be subject to inspection or inspection by the lessor. While landlords generally justify that these conditions are a pure “deterrent” against the manipulation of financial figures by the tenant, such clauses must be carefully studied and negotiated. Also note the date on which the percentage of your gross turnover must be paid to the lessor (i.e. day, weekly or at the end of the month), as this directly affects your cash flow. There are several things that are defined in the agreement – some include monthly rent, mall hours of operation, and termination clauses (all of which are covered in this article). Therefore, when it comes to rental prices in a mall, mall managers set prices based on certain factors, for example.B.
the location of the mall, the size of the mall area, and the fluidity of customer traffic – to name a few. Pavilion REIT is another downtown operator that has granted its tenants a two-week lease waiver. “From March 18 to 31, Pavilion REIT management granted a free lease (including service fees) to non-core businesses at its Pavilion REIT malls (Pavilion KL, Pavilion Elite, Damen Mall and Intermark Mall with a combined net located area of 2.28 million square feet) from March 18 to 31. There is no obligation yet for MCO extensions, as the company needs time to discuss and determine the overall impact of business on shopping malls,” explains the REIT director. But you`re not the only one who`s afraid of losing in this case. The management of the mall will also be worried – since they lose a tenant in their mall rooms. . . .