As expected, Washington politicians have pumped more money into the latest stimulus package, with an additional $2.2 billion being injected into California's rental assistance program. Although this is welcome news to us and many cash-strapped landlords, we don’t want anyone to get a false sense of consolation.
Well-to-do renters may not qualify for the funds and while property owners can apply for assistance on behalf of tenants, the program necessitates cooperation on the part of the tenant. We expound here.
Although Bornstein Law has disseminated reams of information about residential tenancies, we have rarely chimed in about commercial tenancies. We fill the void in this article.
Suffice it to say that owners of commercial properties should not take a "pay your rent or else" approach to tenants that are experiencing economic shock. Nor is it right for merchants to be adamant about refusing to pay rent without regard to the particulars of a store location and understanding the reality that the landlord, as well as lenders and partners, must pay their bills.
We are encouraged that with reduced infection rates, fewer hospitalizations, and the prospect of a widespread vaccine, we are trending in the right direction. This will hopefully mean that we all will come out on the other side of the pandemic safe and restore a sense of normalcy in our lives and our real estate businesses.