Pandemic times call for pandemic measures. At least that’s the prevailing attitude among commercial landlords, tenants-and the court system that keeps both in line. Just about every business has been affected by the “yo-yo” shut down, re-open, then rollback orders from Sacramento-and that trickles down to create lease and rent issues.
Dean Sperling Law is working on one such case now involving a multi-location chain seeking rent leniency by way of abatement/deferral due to reduced income and reduced use of the space. Sperling says “landlords want to work with tenants on these matters. Everyone wants to just find a way to get through the first of the year.”
Rent abatement/deferral usually is an agreement between the landlord and the tenant that provides a period of deferment of rent, rent forgiveness and/or alternative rent terms for a period of time. During this period of time, the tenant pays less than the required rent which is either forgiven (usually for other consideration) or deferred until the tenant expects sales to return to normal. This has ranged anywhere from two to six months.
And working together means avoiding costly lawsuits and trials. Sperling says “the parties certainly recognize that there’s a lot of downside for everyone if we can’t work together.”
Commercial rent is going to be tricky for some time and disputes will be EVERYWHERE. When those things affect YOU and YOUR business including landlord/tenant matters, contract issues, nuisance ADA claims and even collections, call in the good guy litigator Dean Sperling to resolve YOUR matter with YOUR best interests in mind!
More on the case: