Covid 19-reducing rental for commercial tenants?
Asked by
omtatsat (
1237)
September 29th, 2021
Do owners of commercial properties in the USA reduce the rent for their tenants ( small businesses ) or are they obliged to under the law?( in the case of lockdown )
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3 Answers
My daughter opened a body piercing shop just as Covid was peaking. Her agreement with the landlord was that she wouldn’t have to pay rent during months when she was forced to remain closed during lockdown, but the lease would be extended an equal number of time.
That was negotiated in the contract. Not many had that.
I’m in the US. During lockdown some landlords told tenants they would not have to pay for a month or two even when there was no government order. A friend of mine who owns her own hair salon suite had that happen.
I’m not sure if the government mandate that people could not be evicted included businesses? All that did was allow people to not pay rent, but eventually they have to pay it back.
I think a lot of landlords and commercial tenants were in contact negotiating for something reasonable for both parties. A lease contract can be amended at any time if both parties agree.
Not obliged, but some landlords reduced rent because they knew that business was way down. Some forgave it entirely, but some just added it to the back end of the lease.
I think that the theory was that SOME rent was better than no rent at all, and an empty office or storefront.
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