ExerciseNZ highlights that gyms' commercial leases need to be regulated

ExerciseNZ highlights that gyms’ commercial leases need to be regulated

April 22, 2020

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.

21st April 2020 - New Zealand Government looks to ease Coronavirus restrictions

16th April 2020 - Jonas Leisure introduces Group Move live-streamed fitness to Australia and New Zealand

9th April 2020 - Key exercise bodies produce New Zealand’s biggest online fitness directory during lockdown

3rd April 2020 - Eight out of 10 New Zealand trainers and exercise facilities now operating online

27th March 2020 - ExerciseNZ disappointed that New Zealand Government allows delivery of alcohol and cigarettes but not exercise equipment

18th March 2020 - New Zealanders should keep up physical activity during the Coronavirus pandemic

3rd February 2020 - Government, schools and family groups should help young New Zealanders get fitter

18th February 2020 - ExerciseNZ questions fast food and sugary drinks sponsorship of sporting teams

30th January 2020 - ExerciseNZ’s Beddie calls for New Zealanders to be more active in 2020

20th November 2019 - ExerciseNZ findings endorses new research showing that people becoming more active with the onset of summer

20th August 2019 - ExerciseNZ’s Beddie highlights ways that activity increases life expectancy

24th July 2019 - ExerciseNZ calls for action on New Zealand’s obesity epidemic and physical inactivity crisis

30th April 2019 - ExerciseNZ looks to reverse misconception that summer is the best time to join a gym

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