The Unintended Impacts Of Not Paying Your Rent

The global COVID-19 pandemic has resulted in an unprecedented impact on our economy, with many businesses closing their doors and working from home, or ceasing operations entirely. This has generated a ripple effect of questions around an occupier’s obligations, most notably their requirement to continue to pay rent. Before you decide to skip out on your rent payment on April 1st it’s crucial to understand the consequences that will have.

Our experience with some of the largest institutional landlords in Canada has shown that rent relief and abatement discussions are not met with any eagerness on the landlord’s part, and many landlords, with institutional owners, have financial covenants, financing agreements and fiduciary obligations in place that preclude such renegotiation being available to all. Having said that, during these extraordinary times, landlords may offer some relief, even where there is no legal obligation to do so.

Since your business is legally bound to abide by the terms of the lease, it’s important to know that any non-payment of rent without agreement from the landlord may have unintended consequences for tenants. So what should you do? There are five steps that organizations should take to fully understand their current positions, your legal and financial obligations and the options available to you. 

Read the full whitepaper here

Related blog posts

Office Interior
Blog
June 4, 2020

Occupier Resources for New York State Businesses

While the long-term effects on the workplace are still unknown, we do know that short-term changes are necessary for a safe return to the office. Read more on New York State Guidelines for a safe reopening.
Overhead of employees working far apart, social distancing
Blog
June 2, 2020

The Return to Office

Whether reconfiguring your space to accommodate social distancing guidelines or enhancing your remote work program, find out how to reduce density, increase sanitization and foster productivity when you return to the workplace.
Fun Office Signage
Blog
May 28, 2020

Conversations with Cohen - Designing the Post-COVID Office

Reducing density, adopting social distancing practices and focusing on elevated cleaning and hygiene has become the baseline on which many businesses are planning re-occupancy. But what does that look like from an execution standpoint and how will design play a role?