Ta x R e d u c t i o n s E x p e r t s
The thinning line of rental collection in April - 2020
What’s the reason for decreased rent collections?
We all are well-aware of COVID-19 that is creating sudden tumble in financial markets.
The COVID-19 provoked
The
an unexpected outbreak
thinning
which led many retailers
amongst many businesses
to pay just half of the
all over Texas.
rental payments.
half-payments the
cash
are flow
What all comes under retail? Grocery stores Supermarkets Speciality stores Self-service stores Co-operative outlets A chain retailer Limited Liability Company Rather than these the retails are broadly classified into Store and Non-Store based retailing.
Chain cycle of COVID-19
The half-payments didn’t stop with retailers alone. It reached out for a few more sectors causing the whole system to sense the financial struggle. The mall collections are happening only at 30% to 40% because most of them are closed or not working.
The owners of various offices and apartments reported that rental collections have reduced towards 95% rather than what they expected.
The big picture With half paid rentals can lead to creative destruction which is very powerful. Most of the businesses are expecting PPP loans to get back to a firm financial base. More than 17 mm will run out of jobs in a few weeks. COVID-19 has closed stores 10 times rather than normal days. The end will be reconstructing the real estate back again!
Ta x R e d u c t i o n s E x p e r t s
Thank you!
For any queries visit
www.texaspropertytaxtrends.com