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If the factors are opposed to the granting of rental facilities and the tenant is in fact able to pay the rent, the lessor should consider terminating the tenancy agreement and withdrawing all letters of credit or depositing bonds before the tenant goes bankrupt. In the event that a tenant files for bankruptcy before the landlord uses a creditor or applies the tenant`s deposit, the lessor must examine the effects of the automatic stay and consult with a bankruptcy lawyer before taking such action. In the event that the lessor chooses to default on a tenant and apply a rental guarantee, the lessor should consider all local eviction moratoriums and similar mandates to determine whether or not they prohibit such action. There is a space for flexibility in a rent deferral contract to best meet the long-term requirements of both landlords and tenants. Options that encourage lessor flexibility are conditions that enhance a tenant`s security and, in the case of short-term leases, conditions that extend the lease beyond the period set out in the lease. While tenants do not have the legal right to enter into new agreements with landlords, the pressure exerted by COVID-19 requires, as an unprecedented circumstance, a cooperative effort on the part of landlords and tenants. F. Indicates whether an additional warranty should be requested. In return for the granting of rent relief, the landlord should consider whether it is appropriate to require additional guarantees to support the tenant`s obligations under the tenancy agreement (or at least to stop the repayment of the deferred rent). Additional guarantees may take the form of an additional bond, a lease guarantee or a letter of credit. As COVID-19 imposes widespread social reductions and government-imposed closure contracts, tenants and landlords are increasingly under pressure to meet their respective lease obligations. For many tenants, rental obligations account for a significant portion of the total cost of the business, and the requirement to pay rent during an operating interruption can jeopardize a tenant`s activity.

By recognizing the risk to tenants and the longer-term risk to themselves, landlords can enter into tenancy deferral contracts with vulnerable tenants. The adequacy of the rent deferral contract and the conditions it contains varies depending on the tenant. The value of the offer of a deferred tenancy agreement also depends on the chances of retaining a group of tenants and the prospect of re-renting all empty premises to a tenant whose activity fails during the interruption of the activity. If the landlord decides to grant a reduction in rents to the tenant, the landlord should adapt the deferral in order to grant the appropriate relief to the tenant by considering and adapting: it contains an optional provision to include a guarantor. Please note that it is essential for any guarantor to give consent, that it is subject to a rental contract of the ant. B. The duration of the amortization period. The market looks very different on this point. Some landlords require tenants to pay the deferred rent until the end of 2020, while others agree to depreciate the deferred rent on the balance of the remaining tenancy period. If the tenant receives a PPP loan from the SBA under the CARES Act, the landlord and tenant may decide to expedite the repayment period so that the tenant can apply for a pardon (i.e., the rent was paid within the eight-week time frame provided by the CARES Act).

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