The economic fallout from COVID-19 has many people worried about how they’re going to keep their business’s lights on. While the federal and state governments have attempted a patchwork of relief programs to help consumers stay afloat, entrepreneurs are still looking for every way possible to cut costs. One focus for business owners has been their commercial leases. To that end, this blog will outline some general rights and considerations for commercial tenants.
Three-Day Notice
You have the right to receive a three-day notice from your landlord before they initiate the formal eviction process. Additionally, the three-day notice of eviction should contain the procedure for “curing” the reason for the notice. In other words, you generally have the right, as a commercial tenant, to be informed of what could stop your landlord from evicting you.
Business Interruption Insurance
The spotlight has been turned on the topic of business interruption insurance. Specifically, there have been disputes and lawsuits over whether these policies should cover losses associated with COVID-19 and stay-at-home orders. While it appears that many of these policies do not apply to the current situation, it is well worth your time to take a second look at your policy and determine if you have a valid claim. Insurance policies are often written to confuse policyholders, so be sure to ask a professional if you are not sure if your policy covers losses resulting from the pandemic.
Communicate With Your Landlord
Chances are, your commercial landlord is also feeling the economic pinch right now. Open a dialogue with them and see if there is any wiggle room within the lease to change its terms. Be sure to provide balance sheets and other documentation showing that your profits have indeed gone down as a result of the pandemic.
Conclusion
In these unprecedented times, you still have certain rights as a commercial tenant that are more important than ever. To take this topic a step further, check out our recent video that highlights one tactic a client of ours used to get some relief from his commercial rent payments.
Bryant Taylor Law serves a wide array of business clients in a variety of situations; from forming your company to “divorcing” your business partners, we would be honored to represent you and your business interests. For a business strategy session, call our firm today at 954-282-9331.
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