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.
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.