Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…read more
ExerciseNZ regrets New Zealand Government’s failure to pass commercial rent laws
The Exercise Association of New Zealand (ExerciseNZ) has expressed its concern that with proposed rent laws having not been passed as legislation by Parliament there has been no help for commercial property tenants since they were hit by the Coronavirus pandemic.
With gyms and fitness facilities across New Zealand have faced extreme financial pressures during COVID-19, in part because of no rent relief when they have been closed weeks on end, ExerciseNZ Chief Executive, Richard Beddie has today highlighted one Auckland landlord who has tried to impose a 51% increase in a fitness facility’s rent since the pandemic hit.
Stating that such action is “unacceptable”, Beddie advises “I challenge any government minister to debate the issue. The situation for commercial tenants does not work and it means many small businesses will go under because of the lack of action from government. This is particularly the case for businesses like gyms that have to fully close at alert level three.
“The case of the 51% rent hike is unreasonable and predatory behaviour in the current economic climate.
“If a landlord doesn’t agree to rent waivers to assist businesses and the business doesn’t pay full rent, the landlord can issue notice for the tenant to be removed.
“None of this can be stopped unless the government legislates, so any talk about what commercial landlords can to do to help tenants is toothless.”
The case of the Auckland gym has been difficult as it was closed for seven weeks in April and May and is closed again, until Alert Level 3 is lifted. Their revenue has been well down since 1st March, mainly due to members cancelling.
Beddie says their landlord issued the notice of a 51% rent increase at the end of April, during the first lockdown while the business was closed.
Expressing concern that the New Zealand Government’s announcement on 3rd June of support for businesses has not happened that set out “to resolve rent disputes, ensuring there is appropriate rent relief with burden shared by landlords and tenants”, Beddie added “the proposed amendment to the Property Law Act required a fair reduction in rent where a business has suffered a loss of revenue because of COVID.
"We will now make it a very clear and expressed intention that, if fitness facility tenants identify a downturn in their capacity and turnover, then they should fairly expect that to be reflected in rent relief."
He cites that in the Australian state of Victoria, nearly 26,000 agreements for reduced rent have been registered with Consumer Affairs Victoria in the past four months.
Beddie went on to say “before COVID, this particular Auckland gym facing a 51% rent hike was a strong business. There are probably some other situations across New Zealand but there needs to be equity and fairness. The Government must right this for the benefit of all Kiwi commercial tenants.”
21st July 2020 - Technogym’s Nerio Alessandri says ‘gyms are safe’
22nd April 2020 - ExerciseNZ highlights that gyms’ commercial leases need to be regulated
7th April 2020 - Two-thirds of the world’s fitness clubs are currently closed
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
10th February 2019 - Man arrested after burglaries at Auckland gyms
18th February 2013 - Auckland gym rebanding shocks established franchisor
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
ATS are global leaders in altitude training and research. From mask systems and inflatable tents to simulated altitude facilities, we help all athletes gain the competitive edge. Our…read more
PathMinder Pty Ltd have partnered with AllUser Industries srl to bring Europe’s most advanced high security portals to the Australian and New Zealand markets. AllUser Industries started to…read more
Clubware’s online gym software is not your run of the mill management system. It has been carefully designed to incorporate all the elements that a fitness club would need. How did we do that?…read more
Hydrocare Pool Services Pty Ltd offer 30 years of experience in aquatic industry features, products and water treatment. Hydrocare Pools has undertaken water treatment for aquatic centres and…read more
Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…read more
Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!