Break Tenancy Agreement

Cocoon

Hi ,

Would like to check any shop owner have experience on breaking the shopping mall ? Normally what the management will do. Do share and also give some comments here as to give others an reference.

Now do all landlord require personnel gurantee to sign the lease contract?

FF Fashion

Hey Batman, yet to break any tenancy agreement but I reckon the consequences will be clearly spelt out in the tenancy agreement even before you sign it. My suggestion here to always speak with the management. I have seen cases where landlord went strictly with the rules, you break the lease the security deposit will be forfeited, and in some cases, they even require the tenants to pay up rental for the remaining lease. In some cases, the landlord will allow the tenant to find a replacement tenant and the security deposit may or may not be refundable, it all depends on the landlord. And there are some really good ones who may even help you out by offering a temporary reduction in rental or some form of rebates to help you through the tough times.

As for personal guarantee, I have heard of that before but I don't think it's every landlord, and I think, but I may be wrong, it also has to do with your company setup, whether it's a sole-proprietor, partnership or private limited.

Cocoon

Hi Froc,

I fully agree and understand all the terms and clause in agreement. Sometimes, we feel that retailers is in an disadvantage with all this conditions. And yet, no one able to provide an assistance as the big landlord like the capitalm is dominating the retail industry having 16malls in singapore. So we feel government should act as an watchdog if they want to encourage more entrepreunrship for small SME. It will be an very tought environment if the malls are setting all the rules and the market value. Of course, in your opion, you can chose not to rent their units. Thus, this may bring all Singapore malls to have no uniqueness in the tenants mix as only the stronger brand can make it in this established mall. So government vision to make Singapore into an exciting shopping environment able to succeed? Any comments?

FF Fashion

Aiyo, it's Frou Frou, not froc froc.

Read from some threads you are quitting? Which mall are you at?

Their definition of SME is not referring to us lah, we small fry only.

estilofashion

like others mentioned, read thru the documents that you signed... .. try talkin to the management nicely if you'd really end up breaking the contract...

I once had no choice but to break the contract with 1 of the better known landlord... my rental was $1**00... so imagine the deposite i have with them... I spoke to the management and initially they told me that they can give me 2 ways out... 1) just leave, deposite gone.... 2) find someone to take over.....
Tried method 2 for a month but to no avail.... i spoke nicely to the management again.. and somehow a nice chap from the management managed to help me get in touch with a retailer who's been looking at the area and everything was sorted out with their help... end up i nvr lose anithing... not even my security deposite... ...

Cocoon

Hi Frou,

haha...apologise for the tying mistakes.....dont take it seriously

We just went to see my lawyer on this cases.....1 thing to share is there is no sych things of confiscating the 3 month deposit...however, they can use it to offset whatever the damages to them..in this case, your balance rental for the contract expiry. But if manage to get an replacement, then maybe you be safe on the deposit.

As for the landlord willing to give it to you, you must really pray hard whether you are lucky to negiotiate with an good souls....... it really case to case. We have been in retail for 10 years....so some landlord is very nasty and they really are very mean and not prepare to give ways.

Estilo, you are so lucky to have good landlord....but i suppose you need to bear the rent free for 2 week for next tenant to renovation?

estilofashion

Yes, in fact i shifted out during the 1st week of the month,and paid for that month's rental.. I'd say I have to reduce the losses and that was really the best way out.

Wish you luck for your unit ! anyway, care to pm me the locations you are giving up ? might be keen to open a few more outlets.. see if able to help each other out.

Cocoon

Estilo,

Thanks for your offer for help...anyway, the lease is less than 6 months....so I suppose you do not wish to take over......

Seems like your business is doing well ...in yet such bad times....care to share your sucess trips? I believe many owner would like to learn from you.....
Especially now I assume all boss would havig sleepless night about cutting cost and increasing sales.....haha

pokerface

perhaps you would want to turn to ASME for help?

__________________

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estilofashion

nah... not doing too well... but still able to sustain.. times are bad, but it might be a good chance to expand and getting cheaper rents with better locations. Still looking around though ...