Register your mitigation request at the right time at the negotiating table. Discuss your main demands and concessions first and try to reach a favourable agreement. You can ask for a discount later in the negotiations. For example, if the landlord is arguing over the budget required for tenant improvements, you can request a rent reduction for a period of months corresponding to the budget. When negotiating your next commercial rental, it`s always a good idea to see if you can get a rent reduction. … In most commercial tenties, there is a casualty clause (as in the example below) that speaks of rent reduction if the tenant is unable to occupy or access a premises due to a fire or other victims. This could be a partial reduction in rent or a complete reduction depending on the amount of damage and the portion of space the tenant has access to. Possible scenarios could be fires or floods, natural disasters such as earthquakes, tornadoes and hurricanes, or condemnation by the city or government. They may also attempt to negotiate a reduction in rents in case of force majeure such as the act of God, lack of manpower, terrorist acts, state restrictions, etc. At the time of publication, several jurisdictions across the country, including San Francisco, New York City and Los Angles, recently passed rules regarding landlords` rights to enforce rental conditions in these jurisdictions, including limiting a landlord`s ability to drive a tenant away and the ability of a credit institution to close a trusting mortgage or trust authority. We advise you to consult with your legal counsel to understand the current rules that apply to your property tenants must negotiate to require that, regardless of the origin of the victim, the rent reduction provision continues to exist.
For example, some landlords have language in the rental agreement which states that if the tenant or tenant`s employee causes the victim, then the discount clause is cancelled and the tenant must continue to pay the rent during repairs and restoration. The above clause is a good example of the need to start a conversation about changing or obtaining rent as part of a lease agreement with an analysis of the specific terms of that lease.