Homeowners and business households in Vinh city 'support each other' through the epidemic season

"HELPING EACH OTHER" THROUGH THE PANDEMIC SEASON

A series of business kiosks on Nguyen Van Cu Street had to close according to the disease prevention and control regulations of Vinh city. Photo: Thanh Phuc

For over a month now, Ms. Nguyen Hong Vinh, owner of a fashion business on Nguyen Van Cu Street (Hung Phuc Ward, Vinh City) has had toclosed according to epidemic prevention regulationsof the city. Stores closed, business operations had to be suspended, which meant lost revenue.

Sympathizing and sharing the difficulties of the booth tenants, the landlord, Mr. Nguyen Van Duong, proactively waived one month of booth rent for Ms. Vinh. “The epidemic is a common difficulty, if they close their booths for a whole month, where will they get the income? Last year, I also waived booth rent for one month for the tenants. This year, the epidemic is more complicated and lasts longer, I will base on the time off to support the tenants, waiving rent for each day they close,” said Mr. Duong.

Due to the impact of the epidemic, many business sectors are in a slump, small traders are facing many difficulties and need companionship and sharing. Photo: Thanh Phuc

Ms. Vinh was very excited to see the support and sharing from the homeowner. According to Ms. Vinh, for the past 2 years, due to the pandemic, business has been sluggish, especially since the beginning of June, when it has been completely closed. The exemption of kiosk fees has saved up to 70% of business costs.

Being listed as a non-essential service, Duong Xuan Hung's Fashion Hair Salon on An Duong Vuong Street has also been closed for a month now and it is not known when it will be allowed to reopen. "The staff is temporarily off, there is no electricity or water usage so there is no need to pay, only the rent is still paid regularly. Last year, the landlord reduced the rent by 50% for 3 months of the epidemic, this year, I have contacted the landlord to negotiate a reduction or exemption of the rent," said Hung.

According to the survey, most of the kiosks on the streets sell goods,non-essential servicessuch as: fashion, shoes, beauty, spa, karaoke, pubs, coffee shops... therefore, when the epidemic becomes complicated, these types of businesses have to close. As a result, there is no revenue but they still have to pay rent to return to business when the epidemic is over.

Hairdressing, shampooing, beauty, and spa services are all forced to close during this epidemic. Photo: Thanh Phuc

In order to share the difficulties with business owners, most landlords exempt or reduce 50-70% of monthly booth rent; extend the time to collect rent until the end of the year, many households, who previously collected booth rent 6 months - 1 year in advance, now switch to collecting 1 month. With costs including all expenses: rent, employee salaries, electricity bills, taxes of all kinds, etc., that support has helped them somewhat reduce monthly expenses, surviving through difficult times.

Local authorities regularly grasp the thoughts and aspirations of business households to make recommendations and proposals on tax exemptions and rent reductions. Photo: Thanh Phuc

Currently, wards and communes are also taking many actions tosupport small businesses to overcome difficultiesof the epidemic. For example, in Hung Loc commune, according to statistics, there are 149 kiosks in Coi market and over 250 businesses in the ward that have to close. Faced with this situation, the People's Committee of the commune has counted the households that have to temporarily stop doing business, for businesses that pay taxes, they must declare and confirm to propose tax exemption; propagate and mobilize landlords to exempt or reduce booth rent for small traders.

As for businesses that pay monthly fees, the commune requested the market management board to refund the fees during the days when the households had to close their booths... "In the face of common difficulties, this is a way for all parties to "help each other" overcome difficulties caused by the impact of the epidemic", said Mr. Cao Van Cuong - Vice Chairman of Hung Loc Commune People's Committee.

CONSIDER A “WIN-WIN”

Business is sluggish, unable to withstand financial pressure when having to cover business expenses, most of which is rent, many small traders have to liquidate their stores and return the premises. Photo: Thanh Phuc

However, many landlords still do not reduce the rent, and even when tenants return the premises, they deliberately make things difficult. Many small businesses have accepted to lose part or all of their deposits; there are cases where tenants have accepted to lose a year of prepaid rent to unilaterally terminate the contract.

Therefore, both parties need to reach an agreement to ensure fairness, reasonableness, and to share difficulties during the epidemic. Because reducing prices or even exempting rent during the epidemic, in addition to supporting each other in times of trouble, is also an opportunity for both parties to continue to perform the contract.

Because if the two parties do not have a common voice, the contract ends, both parties will have to bear the loss. The lessee unilaterally terminates the contract, accepts to lose the deposit, lose a sum of money invested in renovating the premises and vice versa, the lessor may not find a tenant immediately, and must also pay additional costs for maintenance, cleaning, and protecting the kiosk while waiting for the tenant.

Currently, renting premises is also very difficult because very few people open business at this time. Photo: Thanh Phuc

In fact, currently, business activities are temporarily suspended, revenue has seriously decreased, causing many businesses to be unable to continue to stay, forcing them to return their premises, switch to online business or move to locations with lower rental prices to reduce financial burden. Therefore, many business premises on prime streets have had to hang signs for rent for months, even half a year, but still have no customers asking to rent...