Are rent payments during Covid-19 causing a cash flow issue?
- AuthorSian Taylor
As one of the largest expenses for businesses & commercial tenants, paying rent can be difficult to cover if you have suffered from cash flow issues due to the Covid-19 crisis. However, there are temporary options available to assist if your landlord is willing to agree to them.
Many commercial leases provide for rent to be paid quarterly. If however, paying monthly for a temporary period would assist with your current cash flow we can assist with drafting the appropriate document to record this agreement.
We can also assist with a rent deferral letter which will allow you to postpone all, or a percentage, of your rental payments due under your lease to a later date if your landlord is agreeable. With this type of agreement the rent would still be payable, you would just agree to pay it at a later date.
On the hand, your commercial property landlord may be willing to agree to a rent concession whereby the rent is either reduced or suspended entirely for a certain period of time.
If you do come to a temporary arrangement with your landlord regarding the rent payable under your lease it is important that it is properly recorded. This will avoid disputes in the future as to what was agreed.
We can assist in drafting the necessary documents for landlords and tenants, so please do get in touch if you require any assistance. I can be contacted on 01206 217 337 or firstname.lastname@example.org.