2. RENT DEFERRAL
A tenant may request for landlords to temporarily reduce/abate rent that would then be repaid at a later date. As a result, this is not truly a “rent reduction” as the rent is not forgiven, it is instead reduced immediately and over a specified period of time, but it will be paid back to the landlord at a later time.
More organization and time required for coordination and execution.
Financial obligations are not forgiven, they are pushed into the future.
Allows you to reduce cost in the short term and preserve cashflow.
Maintains your lease in good standing.
Temporary loss of income.
Ability to plan and make arrangements for reduced rental revenue.
Opportunity to influence the terms of repayment.
Builds goodwill and partnership with tenant.
EMERGENCY RENT RELIEF PROGRAM
Rent deferral is the most widely used option in times of crisis, and under the current circumstances, it would likely be an easier arrangement for landlords to accept.
It’s important to note that a rent deferral initiative takes appropriate resources to coordinate and it is essentially an amendment to the terms of the lease. The deferral period and repayment terms must be well documented to ensure both flexibility and adequate protection of your interests.