Do You Need a Commercial Lease Workout?
The COVID-19 pandemic put many businesses in a difficult situation, and many struggled to even remain open. Even if you were able to keep operations going, it can be all too easy to fall behind on your commercial lease payments. If you lose your space, you might lose your entire business, so it is important to know that you might have options. Consult with a commercial real estate lawyer in Encino before your landlord takes legal action for dispossession.
Possible Lease Workouts
Commercial property owners generally do not want to lose tenants any more than business owners want to lose their commercial space. Do not simply assume that eviction is your only option if you cannot catch up with past-due rent. Instead, consider having your attorney seek a lease workout with your landlord.
Your lawyer can negotiate with your landlord to work out terms as an alternative to dispossession, including:
- Forgiveness of a specific amount of past-due rent
- A repayment plan for past-due rent
- Forbearance for a specified time
- Adjusting lease conditions, including expanding operating allowances or the ability to sublease or accept a co-tenant
Dispossession actions require going to court and then finding a new tenant, which might require modifications to the property. Often, with the right negotiations, a commercial property owner would rather reach a workout that benefits everyone involved. It is always worth the attempt if you have fallen behind on your commercial rent obligations.
Discuss Your Options with a Commercial Real Estate Lawyer in Encino
At Urbach Law Offices, PC, we represent both landlords and tenants in commercial lease workout negotiations, and we can explore the options in your situation. Whether you are a business owner or commercial property owner, you should never hesitate to let us assess the situation. Contact us online and call 888.212.9071 today.