After writing our March 17, 2020 blog post titled Business Interruption & Rent Relief, we recorded two podcasts on the same subject. Many discussions followed with clients and friends asking for help in the actual implementation of the advice we provided. The result is that we wrote a template letter that could be used to make a specific request to a landlord seeking rent relief. That letter is provided here. Feel free to use it, but be sure to modify it to fit your unique situation.
Dear (Landlord),
(Company Name) is in severe need of your help. Specifically, we request rent and NNN’s be waived for 3 months starting April 1.
Here is our current financial status (balance sheet and YTD P&L attached):
Cash – we have $____
Burn rate – monthly expenses are $______
Without your help, we are out of business in ____ months
Here is the emergency plan that we have already implemented (describe steps taken or being taken):
- Staff reductions/layoffs – specific numbers
- Remaining staff
- Salary cuts
- Bank concessions
- Vendor concessions
- Applied for an SBA relief loan
- Claims with your insurance broker under business interruption insurance
- What you are doing in the way of marketing
(Add plans for recovery: continuing to serve clients, making sales calls, working remotely, etc.)
Assuming the COVID-19 crisis ends by the end of April and we’re allowed to return to normal operations, we have the equipment, relationships, and leadership to start back serving clients right away. It will take a while to start generating revenue, of course, but our prediction is that we can be back in a position to resume rent/NNN’s payments after the 3-month waiver period requested.
We consider our lease space an integral part of our business and are eager to continue with the investment we’ve made in the space and look forward to extending our lease which expires at the end of February next year.
We are hopeful that our mutually beneficial partnership will endure through these new painful realities.
Thanks so much.
(Tenant)
This is a very tough time for all of us, please reach out to us with any questions.
Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.
Photo Cred: Photo by Benjamin Child on Unsplash