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(Topic ID: 277492)

Lease agreements during COVID


By Patrunkenphat7

34 days ago



Topic Stats

  • 20 posts
  • 12 Pinsiders participating
  • Latest reply 29 days ago by Markharris2000
  • No one calls this topic a favorite

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    #1 34 days ago

    I’m wondering what everyone’s thoughts are on pinball lease agreements during COVID. If a business was renting a pinball machine on a flat monthly rate with a one year lease, but the business was shut down for 6 months with no one playing the machines, how much should the pinball machine owner expect to be paid for the machine?

    Thanks in advance!

    #2 34 days ago

    Well a contract is a contract but at the same time do you want to keep this account? If so then I’d do what it takes to make them feel comfortable.

    #3 34 days ago
    Quoted from Patrunkenphat7:

    I’m wondering what everyone’s thoughts are on pinball lease agreements during COVID. If a business was renting a pinball machine on a flat monthly rate with a one year lease, but the business was shut down for 6 months with no one playing the machines, how much should the pinball machine owner expect to be paid for the machine?
    Thanks in advance!

    What does the contract say? Any clauses for business shut down? If not, they owe you the monthly flat fee. It’s no different than rent for the building they operate in.

    #4 34 days ago

    Usually a business doesn't rent a machine. An operator puts it there for a split of the profits.

    A contract even for that could be messy. Business isn't open, yet the business can refuse to let the op pull the game(s). Or if there is a guarantee on the games, the location may have to pay the guarantee.

    So many variables. No contract. There is a contract. Op or business owner unwilling to budge. Even if they come to a mutual agreement. What if the business never reopens or returns to former income levels.

    What if they mutually agree and tear up any contract. What about later ? Business may find a different op. Op might not go back.

    I know I wouldn't want 50 locations right now. What a mess for street operators.

    LTG : )

    #5 34 days ago
    Quoted from Patrunkenphat7:

    but the business was shut down for 6 months with no one playing the machines, how much should the pinball machine owner expect to be paid for the machine?

    If you have an actual contract, possibly a "reduced rate" of $1 due to unforseen circumstances.

    If no contract, then nothing.

    Personally, I probably would have pulled the game just to err on the side of caution. If the business happens to disappear or go under, then your game may get swept up in the mess.

    Besides that, if the place was locked up for 6 months and had no HVAC running, mold can develop. I entered a building recently that was closed up for 6 months, and mold and rust were an issue.

    With capacity rules, distancing rules, and cleaning rules in place, it's possible that the business owner might not be able to keep the game in place, and you may have to pull the game anyway.

    #6 33 days ago
    Quoted from Patrunkenphat7:

    I’m wondering what everyone’s thoughts are on pinball lease agreements during COVID. If a business was renting a pinball machine on a flat monthly rate with a one year lease, but the business was shut down for 6 months with no one playing the machines, how much should the pinball machine owner expect to be paid for the machine?
    Thanks in advance!

    To be honest with you, I'd expect the owner of the equipment to not get paid and the owner of the business to not answer the phone, regardless of whatever contract is in place or not. In these times it seems a lot of people are willing to be flexible which is good. Everyone seems to be going through something right now.

    I've seen some restaurants around here closed, then open, then suddenly closed again. They don't necessarily have games in them, but if they did I'd be nervous. Somewhere in this sub forum I posed a story of a business that closed up and disappeared overnight and I was extremely lucky to have my equipment left behind without any notice. Nowadays I wouldn't expect to be so lucky. But I don't have a route any more, never will again. It was fun but those were the days I didn't have to compete with phone apps.

    #7 29 days ago

    Thanks for the feedback, everyone. To keep the responses unbiased I didn’t mention that I am actually the business renting the machines from a local operator and not the other way around. I am very responsive to the operator and would never lock him out or not allow him to remove if he had wanted to.

    He used to check in once every two or three months and I’d pay him for the monthly rate arrangement we had. He just checked in for the first time in six months and asked to collect for the full six months even though we were closed and no one payed the machines. I asked if we could negotiate a discounted rate since we didn’t use the machines. Waiting to hear back from him.

    #8 29 days ago

    It would be nice if he worked with you, but if the contract doesn’t allow for it, I’d say you’re on the hook for all the rent.

    #9 29 days ago

    This day and time, everything is negotiable.

    #10 29 days ago
    Quoted from Patrunkenphat7:

    He just checked in for the first time in six months and asked to collect for the full six months even though we were closed and no one payed the machines. I asked if we could negotiate a discounted rate since we didn’t use the machines. Waiting to hear back from him.

    If he doesn't work with you, pay him and tell him to come get his shit.

    #11 29 days ago
    Quoted from DNO:

    If he doesn't work with you, pay him and tell him to come get his shit.

    This is pretty much what I’m thinking. I don’t feel entitled to a negotiated rate, but if he doesn’t work with me on this I’ll ask him to get the machines and not renew the contract.

    He’s a nice guy so I’m hoping he’ll work with me. Just wanted to see what the community thought about this unique 2020 situation. It’s not fun for anyone.

    #12 29 days ago
    Quoted from Patrunkenphat7:

    but if he doesn’t work with me on this I’ll ask him to get the machines and not renew the contract.

    When does the contract end ? You might be on the hook for that.

    LTG : )

    #13 29 days ago
    Quoted from LTG:

    When does the contract end ? You might be on the hook for that.
    LTG : )

    It ends now, and he is asking if I want to renew after paying.

    #14 29 days ago
    Quoted from Patrunkenphat7:

    It ends now, and he is asking if I want to renew after paying.

    No idea on other operators in your area. If he's the only option. That would suck.

    I wouldn't renew until you are open and up to speed.

    LTG : )

    #15 29 days ago
    Quoted from Patrunkenphat7:

    It ends now, and he is asking if I want to renew after paying.

    Super easy choice. Don’t renew.

    #16 29 days ago

    It sounds like you just rent for a flat fee and don't split profits or anything with him?
    What if the tables were turned and you were extra busy for a few months and made a double what you normally did on a machine, would you offer him more money?

    #17 29 days ago

    I've never heard of an arrangement like that. So you keep all the coin drop? Does the coin drop cover the monthly rental fee? Is this a newer game? If he only shows up every 2 or 3 months, was that the only time the game got cleaned? Or do you clean and repair the game?

    Need some more details. The operator not contacting you for six months during a pandemic makes no sense. He should've at least called to see how the business was affected. Also, you probably should've contacted him when your business was shut down. You both messed up there. Not the right way to do business.

    I never had written contracts when I operated games. Always a handshake deal. You have to completely trust the other person, business owner or operator, but also verify via audits to keep everyone honest. Splitting the earnings makes everyone want to keep the games in good shape. Wouldn't recommend a rental/ lease deal. No motivation for the game owner.

    #18 29 days ago

    Remember, a contract states the terms and conditions that will prevail unless both parties decide to make a change. Both parties can agree to amend any contract if they both wish to.

    That said, there could be details that prevent this... for instance if the operator has financed his machines, and the bank is still collecting on his/her loan. The retail location may feel it’s unfair to collect due to COVID, but the machine owner may have their hands tied since they are still on the hook with the bank. They may agree to delay rental fees, but rarely do they agree to forgive these payments. No wonder he called you after six months to collect it all. He has probably been covering bank payments from his savings for the past 6 months.

    (Same issues for apartment landlords who need to collect rents because they have mortgages on their units).

    #19 29 days ago

    Both owner and I mutually agreed to cancel the lease. I no longer have any pins on route. Maybe that will change in the future but it will be a while. Just FYI, my lease agreement was a percentage of coin drop so it didn't make any sense for me any longer.

    #20 29 days ago

    Glad it worked out...

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