As commercial real estate landlords consider their strategies for dealing with the impending possibility of nonpayment of rent due to COVID-19’s economic impact, they should be aware that rent accommodations may trigger liability under loan documents, joint venture agreements or other contracts. This update explores such possibilities and provides recommendations when dealing with nonpayment of rent. Click here for more information.
Whether or not it desires to accommodate tenants, a landlord of single-family or multifamily properties with federally backed loans cannot initiate eviction action against tenants for nonpayment of rent until July 25, 2020 due to the provisions of Section 4024 of the CARES Act. By leaning on the provisions of the CARES Act such landlord can avoid affirmative rent concessions that could amount to inadvertent breaches under loan or joint venture documents. For further discussion of Section 4024 of the CARES Act, see here.