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This Request for a Rent Payment Extension or Discount for Commercial Lease Due to COVID-19/Coronavirus is a letter used by a lessee (also known as a tenant) under a commercial lease to ask for more time to pay the rent for a specific period. It may be used to request an extension for payment of rent, meaning that the lessee asks for permission to pay rent at a later date. It may also be used to request a discount in rent, meaning that the lessee asks permission to pay a reduced amount of rent for a specified period of time.
This document was specifically drafted in relation to the Coronavirus Disease 2019 (COVID-19) wherein businesses are not able to or allowed to operate due to government-mandated lockdowns or quarantines.
This document is not designed for use in the relation to residential leases. For residential leases, see our Request for a Rent Payment Extension or Discount for Residential Lease Due to COVID-19/Coronavirus document.
Due to government efforts to slow the spread of COVID-19, many businesses have not been allowed to operate and are therefore not earning. Many others have not been forced to close down, but have still suffered a significant loss of income.
This loss of income may result to a difficulty in paying rent. Thus, this document helps these businesses request either for an extension of the period to pay rent or for a discount on the rent. The lessee can also use this document for both the extension and discount or in the alternative (extension or discount).
Take note that sending this letter does not guarantee that the request will be granted.
How to use this document
The user should enter all the information required to complete this document. Once completed, the user should print at least two (2) copies of the document. The lessee or, if the lessee is an organisation, its representative should review the information on the letter. If the information is complete, the lessee or the representative should sign the document.
This letter can be sent by mail, email, or fax. It can also be personally delivered. The lessee should keep at least one (1) copy for their records.
Regarding a lessor's rights when a lessee is late with their rent, different laws may apply to this matter depending on which state or territory the property is located in, and whether the property has been leased for commercial or retail purposes.
Retail leases are a sub-category of commercial leases (usually for properties that involve a "retail" element, such as a shop front). The laws in each state and territory regarding retail leases also provide more protections to lessees of retail properties than those of ordinary commercial properties.
Commercial and retail leases are also subject to general principles of contract law, as provided by the common law.
New laws may be passed in the states and territories regarding evictions during the coronavirus pandemic. Check for up to date laws and if in doubt, seek legal advice.
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