The situation of Coworking spaces owners is worsening every day. Its been a month since the country is quarantined. Owners of these coworking spaces are not receiving any support from the government.
The Coworking Spaces owners are not able to pay their fixed costs like electricity charges, workers cost, and many more. The renewal of contracts with the customers is not possible right now, which has caused an enormous loss for the owners.
Tough Times for the owners of Coworking Spaces
After the WeWork debacle of last year, people assumed that things will now be smooth for the market. But not so soon, COVID-19 was introduced. The Lockdown has not managed to change things forever.
Problems faced by Coworking Spaces
- Retaining employees
- Time to time salary pay
- Renewal of contracts with clients
- Unable to pay extra costs/bills
- No revenue has made basic safety and hygiene, a big headache.
- Low occupancy due to layoffs.
There might be a short term impact, but in the long run, things will turn back healthy. Many startups have even failed to pay their leftover dues while the others are not indulging in new possessions due to cash crunch. The things have gone messy with the Coworking spaces in India.
Is a Revival Possible?
As of now, owners have no option left. They are hoping that the government will help them in such a case with a bailout package. Some of them suggest that the government must provide a full-time rental for the Lockdown along with an additional 30 days to help the industry revive. Some other suggestions include early refunds of TDS and GST. Easies loan facility after Lockdown will also help the sector breathe. The government can also provide a moratorium on electricity bills and much more.