By Corina Vanek | Phoenix Business Journal
As April 1 approaches and some Valley businesses have gone two weeks without normal business operations, property managers and landlords in the region are grappling with the possibility that many tenants will not be able to make rent.
“Let’s start planning on April rent being a challenge for everyone,” said David Verwer, director of real estate operations for Mode Commercial, a Scottsdale property management company.
Verwer said his company mostly manages properties for owners who are out of state, so keeping communication with tenants and his clients has been crucial. The company started by reaching out to all tenants in properties they manage to gauge their status.
“Some are OK, they will be able to ride it out a little,” he said. “Some have no revenue at all.”
Handling each tenant situation is taken on a case-by-case basis, because each one’s needs are different and there are different resources available for different types of businesses, he said. The company is working to figure out what tenants’ needs are and respond in a compassionate way.
“How do we help you; how do you help us? Because we have bills to pay too,” he said.
Some Phoenix businesses have asked for rent concessions that will later be added on to the end of the lease, he said, meaning the company does not have to pay rent right away, but will end up paying the same amount over the lease term. Other options, like SBA loans or other relief coming from the federal government can also help tide businesses over until they are able to open again.
“A lot of tenants are in panic mode. There is a knee jerk reaction right now,” he said. “We are telling them, ‘Slow down, we’re not going to lock you out. Let’s see what you can pay.’”
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