Rent Payment Solutions With Landlords: What's Worked So Far
A Note from the Vicus Partners Founders On Rent Payment Solutions for NYC Tenants We've Seen Working So Far
We finally made it out of what felt like a never-ending April. Now that it’s officially May and many of you are considering what to do about paying rent, as COVID-19 continues, we wanted to share rent payment solutions we’ve seen working between NYC tenants and landlords in the past few weeks and remind you that we’re here to help you strategize on rent payment solutions if you haven’t already communicated with your landlord.
What Solutions Have You Seen Between NYC Tenants and Landlords So Far? We’ve seen an incredible amount of collaboration between landlords and tenants in the past few weeks; here are some rent payment solutions we’ve seen:
(a) landlords deferring 100% of rent for 3 months to be paid back over the remaining lease term
(b) landlords deferring 50% of rent for the next 6 months to be paid back over the remaining lease term
(c) 2-4 months of 100% rent abatement now to be added to the end of the existing lease term
We’ve also helped tenants with 2 years or less left on their lease renew now and use the agreed-upon free rent in the new lease now, before the new lease officially starts. This solves for short term cash needs for tenants and longer term solutions for both tenant and landlord given current market conditions. If you have 2 years or less on your lease, we’d love to help you do the same.
Each landlord is different and has different portfolios and levels of solvency, which will determine their willingness to accept certain solutions. We’re prepared to work with you, to think creatively and innovatively, and to facilitate these conversations with your Landlord in a cooperative way.
Do I Have Any Rights to Stop Paying Rent? The truth is, every lease is different. Your lease may have specific provisions for circumstantial deferred rent or rent abatement during times of material business interruption or revenue loss [many companies also have business interruption insurance for this reason, but to date this Coronavirus pandemic is not definitively being covered; read here for our guidance on Business Interruption Insurance and making a claim].
If you do have these provisions in your lease, we can help you speak to your landlord about exercising these rights. If you don’t, we’re here to help you strategize on options. See below for solutions we’ve seen working so far.
Should I Talk to an Attorney First? Do You Have a Recommendation? Before you plan and communicate with your landlord, you want to make sure you really understand your rights within your lease as they relate to ongoing policy changes. To help you navigate this, we’ve asked the reputable law firm Golenbock Eiseman Assor Bell & Peskoe LLP (GEABP) to do a top level review of your lease and answer initial questions you have at no cost to you.
We remain committed to being your unwavering advocate and your partner in long term success. Please contact us at brosenblatt@vicuspartners.com or astein@vicuspartners.com if we can help you come up with a proposed relief plan to discuss with your Landlord, answer any questions you have about the state of the market, connect you to GEABP or for anything else. We’re here to help.
In good health,
Bert & Andrew
