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 Covid-19 pandemic is not definitively being covered). If you do have these provisions in your lease, we can help you speak to your landlord about exercising these rights.
If you do not, now is the time to talk to your landlord. Our job as a tenant-only representative is to be part of the process with you and we are happy to work with your Landlord on your behalf.
The first step is to define what you need to ensure your future stability and success and develop a plan. There is no cookie-cutter solution, but we are prepared to work with you, to think creatively and strategize on how best to achieve what you need.
Next, we will facilitate a conversation with your Landlord in a cooperative way and come to a solution that benefits you now when you need it most.
We remain committed to be your unwavering advocate and your partner in our clients’ long-term success and are grateful to be in a line of work that lets us bring tangible benefit to you as a tenant. There is no charge for this service; our goal is to earn the right to be your real estate advisor going forward.
Many of the details will not be available for a couple of weeks, but here is a summary of what we know to date:
On Friday April 24, 2020, the federal government announced $900 million in commercial rent relief to small business and their landlord. The CECRA provides forgivable loans to landlords who are experiencing decrease in rent revenue since their tenants have been impacted by COVID-19.
- The benefit is expected to be available by mid-May and application is to be done by the property owner
- up to 75% rent reduction is available for small to medium business for the months of April – June 2020 for business strongly affected by Covid-19
- the rent support will be retroactive for the months of April and May
- The governments will cover the first 50% of the rent directly with the property owners (the 50% paid by the government is broken down as 75% paid by Federal Government and 25% by Provinces)
- The remaining 25% of rental reduction will be covered by the property owners
- To be eligible – the tenants must have:
Monthly rent less than $50,000 and
Experienced at least 70% decrease in revenue
- Available for non-profit organizations
- Assistance for rent for larger businesses is still being considered
- Property owners will have loans and/or forgivable loans made available to them through the Canada Mortgage and Housing Corporation. The forgivable loans cover 50% of tenants rent in exchange for landlords providing rent reductions of at least 75%.
We are closely monitoring Federal, Provincial and local government programs and regulatory actions to stay abreast of developments that may affect you and will be happy to update you as more information becomes available.
Please reach out if we can answer any questions on how to handle paying rent, if you need recommendations for a lawyer or accountant, or if we can help you come up with a proposed relief plan to discuss with your Landlord We are here to help. You can contact us at