[WSBAPT] Rent Relief Requests - Response and Strategies

Tue Apr 7 15:26:26 PDT 2020

Hello Listservers:

I was wondering if anyone has assisted their clients in drafting a
modification or addendum to the commercial lease agreement to temporarily
reduce the monthly rental payments for a small period of time and then
require that the balance be paid in full at the end of the temporary
reduction window.  

Many residential loan servicers are offering similar plans.  

If so, can would you be willing to share a template / language for the
temporary payment plan with me and possibly the group if anyone else is
interest?  

Much appreciated and thanks in advance!

Warmest regards,

Michael S. Safren, Esq. 
Attorney at Law 

14900 Interurban Ave. S., Ste. 280 | Seattle, WA 98168 
11900 NE 1st St., Bldg. G - Ste. 300 |  Bellevue, WA 98005 
P: (206) 859-5098 | E: msafren at jennylinglaw.com
<mailto:msafren at jennylinglaw.com>  
www.jennylinglaw.com <http://www.jennylinglaw.com>  |
facebook.com/jennylinglaw/ <http://www.facebook.com/jennylinglaw/>  

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Matt Yates
Sent: Friday, March 20, 2020 4:22 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Rent Relief Requests - Response and Strategies

We have had one commercial property owner client receive a request from a
brewery/foodservice tenant for rent relief.  Tenant's letter indicates that
it is taking due diligence cost cutting measures to reduce its costs as low
as possible but rent is obviously still a significant portion of monthly
expenses.  Accordingly, since tenant is now effectively closed, it is asking
for some rent relief to try to weather this storm.  Generally, I am advising
my client to take a long term perspective even if that includes some short
term shared pain.  We are having a call Monday to discuss specifics but one
idea we are considering is an extension of the lease term by the equivalent
of any months that rent is reduced.  Client also suggested trying to make up
any current discount on later months which may or may not be a realistic
option given a likely economic downturn.  Low hanging fruit is simply
reducing rent but in these unusual circumstances I'm curious what objective
ways there are to share the pain in an effort to get to a productive
outcome. 

I presume that others have clients that are seeking advice on similar
matters.  Would anyone care to respond with ideas or strategies?  Tenant and
Landlord perspectives are welcome.

Matthew D. Yates

Attorney at Law

Yates Marshall, PLLC

10000 NE 7th Avenue, Suite 200

Vancouver, WA 98685

Phone: (360) 449-6100

Fax: (360) 449-6111

matt at yatesmarshall.com <mailto:matt at yatesmarshall.com>  (New Email Address)

www.yatesmarshall.com <http://www.yatesmarshall.com> 

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