Responding to Requests for Rent Deferment
Covid 19 / Corona Virus Michigan Commercial Real Estate Response
Tenant Rent Deferment / Waiver Requests for Commercial Property
As the State of Michigan on March 16th limited resturant operations and the following week completely shuttered most other "non-essential" businesses though at least mid-April, most of our tenants are experiencing a financial shortfall while trying to balance the needs of their employees, payroll and other expenses such as rent
Potential Options for Requests
These are some of the ways you can respond to requests for rental deferments.
The month of rent is spread into equal additional payments and paid as additional rent in the next several months.
The rent amount for the month is reduced one time
Rent is Waived for the month.
Potential Unintended Consequences
All of these options can have unintended consequences for the property owner. From setting a bad precedence, to applying your policy fairly and equally to your tenant base, there are many considerations in how you act. Make certain your policy is clear, is fair and equally offered to all tenants and that your team is well versed on the policy. If you have questions about how your potential policy should be crafted, a member of the team would be happy to help.
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