In most countries and territories, a tenant is not required to submit a turnover list if the rent of turnover is not payable to the landlord. Retail rental laws may exclude certain payments and fees from being accounted for as part of a tenant`s turnover. These exclusions usually include: a turnover rent is calculated on the basis of the turnover achieved by the tenant. It goes without saying that if the landlord can calculate the rent of the turnover, he must have access to accurate information on turnover, but tenants do not always provide the information or make it available in a timely manner. Careful preparation of rental conditions and early negotiations with the tenant can encourage tenants to produce information and reduce the delay in introducing rent and court costs. The main advantage for landlords is that if a tenant acts above expectations, the landlord immediately benefits instead of waiting for a review of the tenancy, and if the landlord rehabilitates a retail development, he will benefit immediately from his investment if it increases the tenant`s turnover. In addition, tenant information allows the landlord to monitor the success and effectiveness of its development and promotion plans or changes to opening hours, and landlords can monitor a tenant`s performance more closely, which may allow them to act at an early stage when the benefit decreases rather than waiting for the tenant to be late in payment or in default. While revenue leasing can be effective in relocating some of the power into the tenant`s yard, it is important that they take into account the weight of the responsibility they bear. This may seem like a compliance exercise, as retailers are required for each rental sale to keep detailed and accurate records of all items sold and to provide their owner with regular “sales certificates.” In cases where trust has collapsed, owners may require a full review, including the right to review and view company documents.
Retailers must therefore ensure that all files and accounts are fully up to date, including cash vouchers, vouchers, computer data, VAT returns and online sales. Given the effects of the retail pandemic, market fluidity is essential. If retail is to survive the effects of Covid-19, radical changes are needed, starting with negotiations between landlords and tenants and the reintroduction of rents on a larger scale. The perfect storm that hits the retail trade means that turnover rents are coming back on their own.