Está lidiando con un inquilino con problemas financieros. ¿Cómo se negocia una extensión de contrato de arrendamiento?

Most Landlords who worked with their occupants during Covid19 are the ones who have assets which are still giving returns. Landlords who did not accommodate during Covid19 are still struggling with occupancy. Learning: Rent is a short term 6-7% ROI, while good karma / good relation can be a longer term much higher ROI. If personally, you are not desperate for the rent and you believe the business owners can be good folks to be working with in the long run- invest in that relation. Work out temporary relief / flexible terms. Commercial leasing is a small world with limited consultants involved. Empathy will hold you in a much better standing in the longer run. You own the asset for 10s of years, not 2-3 years!

Requires a delicate balance of empathy and business acumen like- 1.open communication regarding financial problem is their short term or long term. 2.evaluate the situation based upon past payment history and also ask access their financial document to demonstrate financial situation. 3.explore option for lease extension based upon situation like flexible lease term, rent adjustment possibility of rent deduction. 4. incentive for continuity offer incentive like deferred payment or rent payment of timely credit of payment. 5. amend the lease agreement outline the terms include specific contingencies if their financial situation does not improve. Foster good will retain a reliable tenant, even through tough times.

Inquilino com problemas financeiros: Uma das premissas é reavaliar o crédito. Caso as condições tenham se deteriorado, é necessário melhorar as garantias locaticias; Principalmente através de inclusão de seguro fiança ou Avalistas.

Negociar una extensión de contrato de arrendamiento con un inquilino que enfrenta problemas financieros requiere empatía y claridad. Primero, programa una reunión para discutir su situación. Escucha sus preocupaciones y muestra comprensión. Ofrece opciones: una extensión a corto plazo o un contrato con términos más flexibles. Considera reducir temporalmente el alquiler o permitir pagos escalonados si es viable para ti. Asegúrate de documentar cualquier acuerdo por escrito y especificar condiciones como fechas de pago y duración de la extensión. Mantén una comunicación abierta y regular para abordar cualquier problema futuro. La clave es encontrar un equilibrio que beneficie a ambas partes.

There is nothing better than open dialogue in these situations First we need to assess the exact situation of the vendor who has taken the lease Find out the exact issue why he or she is going through cash flow crunch What is the tentative time for coming back to a positive cash flow ? Evaluating all these points will help in taking decisions for the future scope

Everything can be solved with healthy conversation. Have empathy and do understand that your tenant also is running a business just like you. If you support your tenant in bad times, he will always remember you and will continue for the long term. An example of what we did during covid in 2020, we reduced the rentals by 50% and inturn asked for extension of the lock-in period. This helped us get back to our occupancy at 90% as soon as the covid restrictions were lifted.

When dealing with a tenant in financial trouble, I focus on open communication and flexibility to find a solution that works for both sides. First, I have an honest conversation with the tenant to understand their financial situation and assess what adjustments can be made. Offering flexible lease terms, like a short-term extension or reduced rent for a limited period, helps ease their burden while keeping the property occupied. I also consider offering payment plans or deferred payments if that’s an option. My goal is to negotiate terms that maintain the tenant relationship while protecting the property’s long-term value.

One of the things I learned post-Covid is that all the financial support on offer will not help a failing business. Sometimes it’s best to cut ties and prevent the tenant from falling into further debt. It’s tough, but it’s better for both parties in the long run.

In case the tenant is not at all in a condition to pay a single dime, you still have 3-6 months of deposit which allows you to let your tenant surrender the deposit, vacate the property and you can source a new tenant in 3-6 month period. Thus, negotiating a higher deposit at the beginning of the agreement term is always beneficial.

Don't spoil your relations with your tenant, it's okay if they are facing difficult times. No businessmen would want to or would even think of downsizing their business. Ask for referrals, ask for retainer fees, see how you two can help each other. See if you have some investors and financers to help their business get some runway and maintain their condition.