Rent in arrears

[sherry]

Hi,

I have a tenant in a commercial property that is substantially behind in the rent. They are willing to work with me in terms of payment.

I do not feel our current lease is adequate and it requires an amendment to protect me. Is there someone who can provide me with advice on some of the steps and ideas on how to collect, which documents I require from the Tenant such as the books and incorporation papers etc. I need to follow I have never been in such a situation. In addition the Tenant has listed the business with a realtor.

I would very much appreciate any assistance and will provide further information as needed. If possible a phone conversation would be preferable. Time is of the essence as my Tenant is very willing to move forward with the instruction I provide.

Appreciate any knowledge shared, thank you.

- See more at: http://myreinspace.com/rein_members_only/Legal/85-33130-156260-Rent_in_arrears.html#156260

 

[Thomas Beyer]

In any business you need to understand the rules of the business you are in, or hire someone that does !

In that case that is either a lawyer with expertise in commercial leases or a commercial realtor with expertise in the asset class and/or tenant profile.

Until you get such a person on your team you should consider locking the doors. What does your lease say your rights are ? That is usually what the commercial lease says: landlord can lock doors and start auctioning off the assets in the store.

Other options are to take a % of revenue. Not paying any is not an option you should accept.

Before folks here can give you some meaningful insight you need to tell us a bit more, such as:
What kind of business is that ?
What is their annual revenue ?
Is this a temporary slump in revenue or a systemic poor tenant ?
What would be the ideal tenant in that location ?
What kind of rent is doable in that location ?
What does your lease say you can do in case of non-payment of rent ?
What valuable assets, if any, exist within the premises that you could monetize for cash, and if so, how much would it yield ?

 

[3canctheayr]

[quote user="sherry"]

Hi,

I have a tenant in a commercial property that is substantially behind in the rent. They are willing to work with me in terms of payment.

I do not feel our current lease is adequate and it requires an amendment to protect me. Is there someone who can provide me with advice on some of the steps and ideas on how to collect, which documents I require from the Tenant such as the books and incorporation papers etc. I need to follow I have never been in such a situation. In addition the Tenant has listed the business with a realtor.

I would very much appreciate any assistance and will provide further information as needed. If possible a phone conversation would be preferable. Time is of the essence as my Tenant is very willing to move forward with the instruction I provide.

Appreciate any knowledge shared, thank you.

- See more at: http://myreinspace.com/rein_members_only/Legal/85-33130-156260-Rent_in_arrears.html#156260

[/quote]
As Thomas mentioned, you need to lawyer up, like last week already. You also need to make the realtor aware of the rent arrears, as they will have to make sure that liability is presented in the listing, or possibly may not be able to take the listing if there is an issue outstanding like this( a realtor would be able to clarify that....).