Landlord Tenant Law - LL-T CV-19 Negotiation Tips
Analyze Each Side's Perspective
Recognize the landlord’s perspective. Every tenant will assert that its situation is unique. Most landlords won’t want to sort through the differences from multiple tenants when granting relief.
However, a tenant should prepare to disclose financials if your landlord wants to see them, holding back information lowers credibility.
Creativity in Requests
If the tenant’s cash flow has sufficient liquidity, a creative but mutually beneficial arrangement to obtain a present-value discount for prepaying rent could be brokered.
Besides rent concessions, what can the landlord otherwise provide? Review the lease against your strategic plan and consider paying full rent now in exchange for concessions that should be valuable when business returns to normal. If the tenant mix has changed, can your lease permit the sale of additional products? Can your hours of operation be amended? Are there other restrictions that can be loosened?
Understand the Moment
If you lease multiple properties with the landlord, assess how many are profitable, marginal or loss-generating. You could offer full rental payments on the historically profitable stores and extensions of those leases in exchange for relief on the other stores.
It’s also important to remember that the property owner does not want to spend on legal fees and that bankruptcy judges are sympathetic to business owners affected by situations out of their control, especially in unprecedented moments. In other words, understand the landlord’s risk when it comes to pushing you into bankruptcy while being careful to not overplay your hand.
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