Ontario Premier Warns 'Greedy Landlords' They Must Aid Commercial Tenants

Sorry the commercial landlords are being greedy. They would have to give up 25% of incoming rent for a few months so their tenant can save 75%. Sounds like the right thing to do considering those tenants are struggle to stay in business right now.

TW8511 wrote: ↑ Sorry the commercial landlords are being greedy. They would have to give up 25% of incoming rent for a few months so their tenant can save 75%. Sounds like the right thing to do considering those tenants are struggle to stay in business right now.

I hear you. But landlords have mortgage to pay too, and you know the cap rate on commercial properties are not that great to start with. Gov is passing to the balls to them and call them greedy if they don't play along.

Are we talking rent deferral or reduction? Landlords are not charities.

Furcorn wrote: ↑ Are we talking rent deferral or reduction? Landlords are not charities.

Temporary reduction... landlords would receive 75% of their normal rent...

I get that it’s not a charity, but wouldn’t a potential outcome be that landlords would receive 0% now if they force the business bankrupt or evict, and have to roll the dice in court?

Nice of Ford while he and his MP buddies are receiving 100% of their pay. Always easier to make some other guy take the hit.

Going forward what’s the point of even having a lease? He screwed residential landlords with the no eviction order. Now commercial. Do those businesses that operate in those premises get a 25% haircut from their other suppliers? Doug is a full blown liberal now.

Steven91 wrote: ↑ Temporary reduction... landlords would receive 75% of their normal rent...

I get that it’s not a charity, but wouldn’t a potential outcome be that landlords would receive 0% now if they force the business bankrupt or evict, and have to roll the dice in court?

Yes, but my point is the fact that they don't do it does not mean they are greedy. Gov is shifting the risk around and call it a day. Also - the program is setup thru CMHC. I am not sure how many % of commercial properties actually deal with them.

Has Ford taken a reduction in his own income?
Very easy to say others should just accept things.

cartfan123 wrote: ↑ Nice of Ford while he and his MP buddies are receiving 100% of their pay. Always easier to make some other guy take the hit.

Going forward what’s the point of even having a lease? He screwed residential landlords with the no eviction order. Now commercial. Do those businesses that operate in those premises get a 25% haircut from their other suppliers? Doug is a full blown liberal now.

Doug is getting a lot of love. He knows exactly what he's doing.

Landlords have obligations and families to feed. Why don't people ever think of that?

cartfan123 wrote: ↑ Nice of Ford while he and his MP buddies are receiving 100% of their pay. Always easier to make some other guy take the hit.

Going forward what’s the point of even having a lease? He screwed residential landlords with the no eviction order. Now commercial. Do those businesses that operate in those premises get a 25% haircut from their other suppliers? Doug is a full blown liberal now.

It was the right thing to do.

We need to remobilize the economy en masse. Evicting people who can’t pay rent won’t do that. Same with small businesses that will struggle with getting back. Everybody needs to take the burden of the pullback, or we’ll all be stuck in this for decades.

I think the government needs to get banks to pull back on mortgages for everybody for three months. A pause. No payments. No interest. For everybody on every property. Same with rent. Three months, nobody pays anything. Banks, in turn, can halt GIC payments for the same time to offset. Like those three months didn’t even exist.

JayLove06 wrote: ↑ Doug is getting a lot of love. He knows exactly what he's doing.

Landlords have obligations and families to feed. Why don't people ever think of that?

At least the landlord can sell their property if they arent able to put food on the table for their family. What's the failing small businesses option?

He was talking about commercial landlords. I think commercial landlords have more options than your average residential landlord (i.e favorable lease rules, are more likely to have deeper pockets, and can always change occupancy of their buildings to residential units - which major cities with low vacancies would welcome).

But Ford's speech is definitely a political move. Majority of folks don't have any sympathy for commercial landlords and can't relate. I'm going to have to lean with Ford on this one. You can't be stupid enough to break a deal for only 25% reduction during COVID unless you had ulterior motives to begin with.

I agree with OP. I don't think it's "greedy" to charge rent. However, it probably makes financial sense. In this economic environment, how likely are you able to find a new tenant who is willing to pay the same rent or more? If you sue, what are the chances of you successfully suing for the performance or value of the lease agreement and able to enforce the judgment? "We have a contract you need to pay me" only works when the lessee has the genuine ability to pay.

JayLove06 wrote: ↑ Doug is getting a lot of love. He knows exactly what he's doing.

Landlords have obligations and families to feed. Why don't people ever think of that?

He’s getting love from liberals who are using him while he’s acting like a liberal. He thinks he can play them into getting their vote. He’s dead wrong Once this is over they will go back to smearing him for everything. Imagine if he tries to cap salary increases of govt employees coming out of this to help balance the books? They are already smearing him with anytime he reopens slightly even when he’s way behind the curve of other provinces.

He’s played a dangerous game turning red.

I think Ford made a good point in that if landlords don’t cut some of these businesses some slack, then the business goes under and I’m not sure there are a lot of people looking to open businesses right now. Some rent is better than the property sitting vacant.

crosby86 wrote: ↑ At least the landlord can sell their property if they arent able to put food on the table for their family. What's the failing small businesses option?

A lot of assumptions here. It’s the principle that I have a problem with especially coming from a guy collecting full pay who’s criticizing others for not taking a pay cut. It just looks bad. You hope landlord and tenant can work things out amicably but the landlord doesn’t have to. And I’d all landlords just up and sold, what would businesses do?

Better way to work this whole thing out and Ford came off as a hot head. The program is stupid. Just pay the landlord directly and call it a day.

Extrahard wrote: ↑ He was talking about commercial landlords. I think commercial landlords have more options than your average residential landlord (i.e favorable lease rules, are more likely to have deeper pockets, and can always change occupancy of their buildings to residential units - which major cities with low vacancies would welcome).

But Ford's speech is definitely a political move. Majority of folks don't have any sympathy for commercial landlords and can't relate. I'm going to have to lean with Ford on this one. You can't be stupid enough to break a deal for only 25% reduction during COVID unless you had ulterior motives to begin with.

He called them greedy and that is unfair. I bet the government would sing a different tune if landlords paid 75% of their tax obligations.

JayLove06 wrote: ↑ A lot of assumptions here. It’s the principle that I have a problem with especially coming from a guy collecting full pay who’s criticizing others for not taking a pay cut. It just looks bad. You hope landlord and tenant can work things out amicably but the landlord doesn’t have to. And I’d all landlords just up and sold, what would businesses do?

Better way to work this whole thing out and Ford came off as a hot head. The program is stupid. Just pay the landlord directly and call it a day.

Everything’s always good to shortsighted people as long as it doesn’t affect them Or benefits them.

Govt employee on full pay and 50% productivity but WFH? “Don’t reopen, too risky”
Tenant getting CERB “Hey this money is for food screw the rent...Douggie said it’s cool not to Pay!”
Business “hey stick it to the landlords cuz Douggie said so”...yet are their other suppliers being forced to cut 25% off the top to pitch in?

Anyways fine and good if it’s seen as someone else’s money. Doug was supposed to be the big picture guy. Instead he’s gutted the sentiment towards doing business in Ont (and larger picture with Trudeau in Canada). The border closures....makes it easier for US companies to reallocate back to red states in the US where RE is cheap and there’s a true open for business mentality.

If Doug, Trudeau and the cronies were taking a 25% pay cut I might be able to see the shared sacrifice, but it’s a one way street here and using the govt debt to make them look good.

I will have to take such events into consideration when I consider buying REIT's. Not much else I can do really.

BlueSolstice wrote: ↑ I will have to take such events into consideration when I consider buying REIT's. Not much else I can do really.

For sure. Should be an eye opener for anyone involved in real estate investment.