The quarantine enacted with a crisis in São Paulo, Rio de Janeiro and other cities in Brazil is already affecting the rental market real estate🇧🇷 Although with tenants and landlords concerned about the lack of revenue resulting from the closure of stores and establishments and the restriction of movement of people.
However, a solution that emerges is the search, by the tenants, for an agreement that can reduce this impact. This alternative is being encouraged even by real estate agents.
Closed trade, lower rent Businesswoman Junia Pereira, owner of a clothing store in Pinheiros, in the western part of São Paulo, realized a few weeks ago that the coronavirus crisis would significantly affect her business.
So when the city hall decreed that the trade would be closed from Tuesday (24), she was sure that she would need to negotiate an agreement with the owner of the property. “I don't do online sales, only in person.
Revenues are going to drop a lot, so I prepared myself and opened a communication channel with the owner”, says she, who has occupied the same townhouse on Rua dos Pinheiros for four years. The owner said he is willing to negotiate, and Junia is preparing the proposal.
Paying rent is for later
“Most companies will have acute cash problems. They will need to pay employees and bills. They will leave the payment with the rent crisis for later”, says Alberto Ajzental, coordinator of the Real Estate Business Development course at FGV.
According to Matheus Fabricio, executive director of Lopes, a real estate company that works with commercial and residential rents throughout Brazil, many tenants have already contacted the administrator to negotiate the rent.
The biggest demand, for now, is from users of commercial real estate — three out of four applications, he estimates. “The ones looking for it are small and medium-sized companies, which had their business closed and are worried.
I think it will also happen in the residential sector, but later on. It is still very recent.” Fabricio points out that, despite this common profile of small and medium-sized entrepreneurs. And there are already requests for a new agreement from all types of entrepreneurs, from all sectors.
“There are people who have a micro business and are renegotiating a lease that costs R$ 850, as well as entrepreneurs who pay R$ 25 thousand and already have a more consolidated business.”
The types according to crisis
According to the Lopes director, tenants' proposals for rent are varying between three formats. One of them are businessmen who are not willing to negotiate and say only that they will not pay the amount during the quarantine.
“Although it is a minority, even a small one, that acts in an unreasonable way”, he says. But there are those who arrive with a proposal, usually to reduce the rent by around 50%, for a period that varies between 30 and 90 days. So “it depends on the level of anxiety and concern of the person with the crisis”, says Fabrício.
According to him, this is the most common settlement proposal made by tenants. Another considerable part, he says, are tenants who prefer not to disburse any amount now and just dilute these payments over the next few months, until the end of the year, without getting any discounts.
In short, according to Fabrício, this option is offered by businessmen who have other debts to pay. And they prefer not to disburse any amount in this period of uncertainty.
