In this ever changing world of the Coronavirus, one thing is certain, tenants are going to be seeking rent relief, whether they are legally entitled to it or not. This is a follow up to my previous post in which I discuss whether a tenant can rely upon the Force Majeure clause in a lease. To read my Force Majeure post, click here.
The audio only podcast is available now to listen or download. It is an edited version. Due to time constraints and the demand to get the recordings out, I have been unable as of 3/29/20 to edit the video version.
To see a summary of the key points discussed with a time stamp for the audio podcast, read further.
VIDEO RECORDING ALSO AVAILABLE
The unedited version of the video recording of the webinar is now available by clicking here.
AUDIO SUMMARY WITH TIME STAMP
[00:17:58] WHEN SHOULD A TENANT APPROACH A LANDLORD FOR RENT RELIEF?
[00:18:10] SHOUILD A TENANT STOP PAYING RENT BEFORE CONTACTING THE LANDLORD?
[00:19:01] CALIFORNIA MORATORIUM ON EVICTIONS
[00:20:51] SHOULD A LANDLORD SEND A FORCE MAJEURE LETTER?
[00:20:52] WE RECOMMEND PAYING YOUR RENT
[00:22:00] SHOULD A LANDLORD SERVE A 3 DAY NOTICE?
[00:22:00] THREE THINGS TO PAY ATTENTION TO
[00:26:53] TENANT BEST PRACTICES
[00:28:59] SHOULD TENANTS PROVIDE TO LANDLORDS HISTORICAL FINANCIALS
[00:32:58] LANDLORD’S PERSPECTIVE.
[00:36:23] BOTH PARTIES ARE LOOKING FOR FLEXIBILITY.at I saw in
[00:40:24] WHAT IS AN AGREEMENT IS MADE AND THE TENANT LATER DEFAULTS?
[00:41:25] HOW MUCH SHOULD THE TENANT ASK FOR AND HOW TO PROTECT THE LANDLORD?
[00:44:04] DURING THE CRISIS, CAN A WORKOUT AGREEMENT INCLUDE PERCENTAGE RENT? CAN YOU INCLUDE PERCENTAGE RENT IN NON-RETAIL PROPERTIES?
[00:47:17] WHEN NEGOTIATING RENT RELIEF, SHOULD THE LANDLORD CONSIDER THE AMOUNT OF GOVERNMENTAL ASSISTANCE THE TENANT IS RECEIVING?
[00:48:28] POTENTIAL USE OF BUSINESS INTERRUPTION INSURANCE.
[00:51:06] HOW DOES A PERSONAL GUARANTEE EFFECT THE RENT RELIEF NEGOTIATIONS?
[00:53:40] IS THIS AN OPPORTUNITY TO EXERCISE THE OPTION AND/OR RENEGOTIATE PERMANENT PROVISIONS OF THE LEASE?
[00:58:27] SHOULD THE TENANT PROVIDE A SURVIVAL PLAN TO THE LANDLORD?
[00:59:17] WHO SHOULD BE FEELING THE MOST PAIN, THE LANDLORDS OR THE TENANTS?
[01:03:12] LANDLORDS DO NOT WANT TO EVICT TENANTS
[01:04:19] WHAT’S THE BEST WAY FOR A TENANT TO REACH OUT TO A LANDLORD?
[01:05:17] WHAT SAFEGAURDS SHOULD BE BUILT INTO DEFERRAL AGREEMENTS TO PROTECT LANDLORDS IN WORKOUT AGREEMENTS.
[01:05:17] HOW DO YOU PROTECT LANDLORDS IN THE EVENT THE TENANT EVENTUALLY FILES FOR BANKRUPTCY PROTECTION?
[01:06:58] SHOULD LANDLORDS GET SECURITY FOR THE DEFERRED RENTS? WHAT ABOUT ADDITIONAL GUARANTEES?
[01:09:25] SHOULD A TENANT IN A MALL THAT IS CLOSED, CONTINUE TO BE OBLIGATED TO PAY RENT?
[01:13:19] WHO IS GOING TO PAY PROPERTY TAXES, UTILITIES AND CAM CHARGES OR BUILDING OPERATING EXPENSES?
[01:15:21] SHOULD ANY WORKOUT AGREEMENT BE IN WRITING AND CAN AN EMAIL BE CONSIDERED A WRITING?
[01:18:32] RELY ON PROFESSIONALS, INCLUDING BROKERS, ATTORNEYS AND OTHERS WHO ARE EXPERIENCED WITH COMMERCIAL LEASES.
Even if tenants are not legally entitled to a rent reduction while the economy slows to a crawl, landlords may be willing to make some accommodations. During the Great Recession of 08′, it was common for tenants to request rent relief and for landlords to give it. The bottom line is no one wants to take space back, particularly from good tenants who, but for required closures have been good, rent paying tenants.
In this webinar Howard Kline and our other panelists will be discussing landlord and tenant strategies for negotiating tenant rent relief and with an eye towards an economic recovery from this terrible virus.
ABOUT THE PANELISTS:
Howard F. Kline, Esq. LinkedIn
Howard has been focusing much of his 43 year, legal career on landlord tenant relations, whether negotiating leases or litigating disputes. Howard is the founder and host of CRE Radio & TV and has published hundreds of blog posts and podcasts on a wide array of commercial real estate topics. Howard has been published in numerous legal periodicals, including the National Law Journal, LA Daily Journal and other business.
Peter Morris: LinkedIn
Peter D. Morris is the CEO of the Greenstead Group, based out of Vancouver, Canada. He is a highly credentialed real estate executive with almost 40 years of global experience including all of North America, South America, South East Asia, China and the Middle East; as well as covering most asset classes from both the owner and occupier perspective to provide a true 3600 advantage for his clients. He is widely recognized as an industry leader, commentator, author and educator.
Jerry Neitlich: LinkedIn
Jerry Neitlich is the founder of IN/HOUSE Corporate Real Estate. He developed business model for IN/House in the early 1990’s in response to the growing need to provide full time commercial real estate services for companies that did not have nor could not afford to employ full time in-house personnel to plan, implement and manage their second largest budgetary item. Today, IN/HOUSE provides those services for companies with less than five employees and one location to firms with hundreds of employees and multiple locations. They act as a companies corporate real estate department.
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