Thousands of tenants are operating with a lack cash flow or access to additional working capital to pay their rent. Landlords still have to maintain their responsibilities to pay maintenance costs, real estate taxes and debt service on the property.
With certain exceptions, landlords should exercise patience, restraint and consider practical short-term workouts only. There are many leasing provisions that should be reviewed that would affect both parties’ negotiations and the terms of any short-term workouts such as: tenant operating covenants; co-tenancy; kick-out and recapture rights; force majeure; renewal options; defaults and remedies; and security deposits and other collateral. Most businesses will be allowed to resume full operations and begin to rehire, reopen and rebound.
In these uncertain times, it’s important for you to consider the best contract. We think landlords and tenants should only consider short-term workouts. If you need assistance with a leasing contract, please contact Martin Law Group at www.callmartinlawgroup.com or call us at (863) 949-0892. We are offering a free legal consultation for the month of October.