Tenant’s Comprehensive Guide to Rent Relief

COVID-19. We are in the midst of a modern-day global crisis. There is no playbook. No one has all the answers, and everyone is adapting on the fly – some better than others. The best decisions are typically educated ones, so the intent of this guide is to arm you with information that applies to all commercial leases: office, industrial, medical, and retail space.

Rent Relief

There are a variety of methods to structure rent relief. The most common options are:

  • Rent Abatement: Free or waived rent (2 months free)
  • Rent Reduction: Partial rent, such as 50% rent
  • Late Rent (aka Delayed Rent): Pay later in the month instead of on the first
  • Rent Deferral: Repayment of a deferred amount by amortizing it over a defined period, adding it to the end of the lease term, repaying it with a lump sum on or by a specific date, or in exchange for extending the lease (e.g. for 1 year). One of the most prevalent strategies proposed by landlords.
  • Application of Security Deposit: Use the security deposit to help offset the rent burden.
  • Promissory Note: Convert the amount of debt (i.e. rent) forgiven by the landlord to a separate promissory note.

Which option is the best for you? Download your copy of Tenant’s Comprehensive Guide to Rent Relief.

Related blog posts

Lease Audit
Blog
February 22, 2021

Isn't it time you got a Lease Audit?

By now, your Landlord should have provided your 2020 year-end Additional Rent reconciliation statement, as well as their 2021 estimates, and odds are, it is not what you expected. Understanding your rights as a Tenant versus what the Landlord is able to chargeback is paramount. A thorough Lease Audit can create both immediate and future savings by ensuring the Landlord does not repeat prior practices that cannot be justified. This means real savings that stay with you – where they belong.