ExerciseNZ highlights that gyms' commercial leases need to be regulated

The Exercise Industry Association on New Zealand (ExerciseNZ) is calling on the nation's Government to step in and regulate the commercial leases during the Coronavirus crisis, just as they have done with residential tenancies.

Having surveyed its members, with early data showing most landlords are helping tenants, ExerciseNZ Chief Executive Richard Beddie highlights that more than one in 10 are refusing to give any rebates or reduction.

Commenting on the findings, Beddie (pictured) advised “we are even aware of one facility that the landlord put the rent up after 'Level 4' (Coronavirus restrictions) were put in place. This type of behaviour is reprehensible."

With around 90% of New Zealand's 800 gyms and studios in the country operating out of leased buildings, Beddie explains "for our industry, like many others, rent is one of the biggest costs and based on our research we believe about 10% of landlords aren’t working with tenants who are increasingly facing the likelihood of their gym or studio businesses going under during the COVID-19 pandemic lockdown.

“We are appealing to the government to adopt similar law changes as residential rent tenancies.

“It needs to balance both the needs of the tenant and landlord. What Australia did by allowing up to 50% rent deferral, to be amortised over the next 12 months, is the right kind of balance here for New Zealand.

“This way, landlords are still paid full rent, but the tenant gets a cashflow reprieve in the medium term to help them through the coronavirus shutdown and the re-normalising phase.

“As most gyms will still be closed during alert level three, and significantly restricted even during level two, it’s important that landlords and tenants work together to get through this.

“The phrase ‘we are in this together’ has been used by many, and never has this been more appropriate and applicable than now."

The New Zealand Government has placed an immediate freeze on rent increases and is supporting New Zealanders to stay in their rental properties with a six month freeze on residential rent increases.

Beddie says measures to protect commercial tenancies will protect the interests of tenants, landlords and the wider community during this unprecedented time.