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  • Profile photo of JpcashflowJpcashflow
    Participant
    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi Every one,

    Any advice or help would be great and appraicted. My wife and I own a small bussiness. A tattslotto shop and newsagency.
    I also work full time at a transport company doing Sales & Marketing.
    Its great becasue my wife and i get some time apart but at the same time we have increased our cash flow.

    In the last 6 months the shopping center has lost a few customer. From what the customer have told me the reason why they dont come to the center as much as they used are for the following:

    1) Two current tennants have been causing discomfort for alot of the customers.
    – One Cafe has been casuing alot of people to get sick from its food, the owner and the people who work there are not even Chefs or even know how to maintain a hyginic place.
    – The other a fruit shop has the owner smoking in front near its fruit and alot of the customers have said its revolting.

    2) The land lord of the center have not changed anything in the center for the last 5 years yet, our rent, outgoings and marketing promotion fee have gone up every year.

    3) Alot of the shop owner have had some great ideas which might attract new customers but as soon as we go and request this from the property manager he says email me, we never he back , or the request has been rejected this or that but there is no proof from the owner of the shop saying anything.

    We are are fearfull that we might become like other shopping center, where all of small places have gone bust and plenty for lease boards around. A shopping center not to far from us is going through this where alot of shops have closed and know the land lord offers cheap rent, free rent for 6 months and all this to attract new tenats.
    What we want to do is fix this before the center gets to this stage.

    What leagl rights do we have if any?
    If we cant get leagal help i think 80% of the shop owners are willing not to pay any rent untill some thing has been met to some degree.

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
    Email Me | Phone Me

    Your first port of call in finance :)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    First thing would be to read your lease agreement and see if the land lord is breaching any of the terms.

    If that cafe is really making people sick then surely the food inspectors would have something to do about it. They would be fined for repeated problems.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Retailers exert very little control over centre management however the retailers do have a bit of a say when it comes to the direction of expenditure for the marketing levies – it is your 5% of base rent.

    Withholding rent is a breach of lease so is not advisable. You should make an approach to the retail & marketing managers to express your concerns.

    btw who is the shopping centre management (pm me if not appropriate or you don’t wish to openly disclose).

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