Commercial Landlords - how are you gauging what Tenant's (if they approach you) legitimately require rent relief?
Let's face it businesses may come to us for rent relief regardless of their circumstances and we all have  mortgages/taxes to pay.  

If it's a restaurant tenant (which we have a few) I am absolute going to work with them.  

But if it's an office user - lawyers, CPA, whatever, what is your response?  Do you ask for their updated financials?  Give them a reduction in exchange for extending lease term?  

Would like to hear some ideas on this.
[{"id": "fkua5ad", "text": "Case by case basis but in general provide relief and amortize the relief across the rest of the lease term, potentially extend the end of the term for however long relief lasts.", "replies": [], "depth": 1}, {"id": "fkuafv0", "text": "Having gone through this during the last recession, don't be a dick, but make the tenants work for it. Our phone would ring daily with tenants just asking for an outright reduction or relief. We would ask them to provide historical sales, financials, etc. and the majority never bothered. If they did, then we would evaluate. Make them prove that they actually need it and see how it fits into the overall.\n\nIn general, any reduction/relief gets recaptured down the line. You can also use it as an opportunity to extend term. I would be as generous as the numbers allow with restaurants for the next 3-6 months. This is going to crush their business and there will be no one to backfill. Interesting times ahead.", "replies": [{"id": "fkucdvr", "text": "Good thoughts thanks.  In my opinion I have some time to buy before rubber hits the road from standpoint - March is already paid.  April, sorry but unless you're a restaurant you should have sufficient savings to cover, May if its clear a tenant has a light bag maybe I can allow them to pay with deposit.  So all of a sudden were at June and just praying outlook is better.  idk.  We will see.", "replies": [{"id": "fkugrnw", "text": "The question is: if they leave, who will fill the space? No one? Would you rather have a tenant occupying the building or a dark shell that you need to lease out again, TIs, or more.\n\nThis is all unprecedented. Work with your compatriots as best as you can. They will reciprocate when they can.", "replies": [], "depth": 3}, {"id": "fkvbzno", "text": "You're a cunt", "replies": [], "depth": 3}], "depth": 2}, {"id": "fkuip50", "text": "The lack of backfill is a big reason to be flexible with tenants.  It\u2019s not like there is going to be anything to replace a old tenant with any time soon so help the ones you can if possible.", "replies": [], "depth": 2}, {"id": "fkv8p0k", "text": "Agreed with this. We have had 10 relief requests already in the past 3 days. Things just got serious in BC in the past couple days. \n\nHave any of you had the tenant sign a non disclosure agreement not to discuss the terms of the relief with other tenants? We are more likely to help some tenants than others and we know they talk. Trying to avoid that...", "replies": [{"id": "fkvaqxk", "text": "Do you mean BC- British Columbia? We haven\u2019t gotten requests yet but I\u2019ve had tenants call me voicing their concern for the next couple months. \n\nHow do you plan on dealing with this? Most of the calls I\u2019ve gotten are from large retail tenants 4,500 - 15,000 sq ft.\n\nOf those, I have some that have expiring leases.\n\nI\u2019m thinking about leveraging their deposits since renewal of some don\u2019t seem likely.\n\nWould love some advice!", "replies": [{"id": "fkvc0u2", "text": "Yes, British Columbia. We have relatively few retail but they are hurting. A couple restaurants as well - they are toast. But we will try to help them as much as possible.  We do use the deposits when necessary. \n\nWe are also sending a memo with a link to the following site to tell our tenants to help themselves by taking advantage of all available government programs to help through this difficult time. \n\nhttps://www.tradecommissioner.gc.ca/campaign-campagne/ressources-entreprises-COVID-19-business-resources.aspx?lang=eng", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "fkw92h3", "text": "Do you own resi too? What are/were your thoughts on reductions?\n\nMost of my resi tenants are hard working, blue color individuals. \n\nI reached out to them and said if they paid timely we can greatly reduce their rent by x amount for the months of April and May.", "replies": [{"id": "fkxcm1o", "text": "We only have a couple residential tenants on development land. Haven't heard from them yet. Keeping good tenants by reducing their rent is totally worth it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fkugi73", "text": "OP, my post may not answer your questions specifically but I went through similar situations during a hurricane that essentially shut down all businesses for a variety of reasons. These shut downs were more than a year in some cases. Obviously this type of pandemic is much different than that hurricane.\n\n-\n\nWithout getting into a specific type of T (e.g. office or restaurant), it starts with a proactive T. You already know their track record for payments (i.e. rent history) and you have a certain relationship with them. \n\n-\n\nFor example, rent is due April 1. If they come to you WAY before that date and discuss their issues, I'd be more receptive. I'd be more understanding and listen to them and discuss a \"plan\". I value a T who is \"honest\" and proactive. I like when the lines are open for communication. \n\n-\n\nShort of some specific reason (e.g. health, family emergency etc.), I don't like to chase Ts and try to get answers. I am less receptive to those that ignore the issues that many are having. I understand the LL may not be the most important person in their life BUT send an email or make a call.\n\n-\n\nFinally, given the severity of what is going on. I have no interest in any type of eviction or going down that road. I am going to actively try to figure things out with each T, should they need help and make a plan.", "replies": [], "depth": 1}, {"id": "fkuwu7p", "text": "Asking for financials is about all you can do.  Most it will be obvious, ie. restaurants.  CPA's?  Tell them to pound sand.  \n\nI buy/sell a fair amount of property it's amazing how many got permanent relief in terms of an ongoing rent reduction from the 2008-09 recession.  Best thing you can do for them is free rent now, but I'd get some extra term for it.", "replies": [], "depth": 1}, {"id": "fkvmr9h", "text": "From a client perspective, I expect rent relief and in exchange I'll give you an extended lease to make up for it.   As a consumer entertainment business I expect to be forced to close by the county any day now.  Almost was today, but the wording barely allowed me to stay open.", "replies": [], "depth": 1}, {"id": "fkvpk0m", "text": "It\u2019s going to be a tenants market for a while, if this lasts more than 2-3 weeks, you landlords are fucked!", "replies": [{"id": "fl4thhq", "text": "While there is a stay on evictions they can still be filed. Tenants that share your attitude will feel the burn at some point. This is far from a free for all. \n\n  We should all treat each other the way we would like to be treated ourselves. Mutual respect goes a long way.", "replies": [], "depth": 2}, {"id": "fl4ti15", "text": "While there is a stay on evictions they can still be filed. Tenants that share your attitude will feel the burn at some point. This is far from a free for all. \n\n  We should all treat each other the way we would like to be treated ourselves. Mutual respect goes a long way.", "replies": [], "depth": 2}, {"id": "flch08p", "text": "As of this minute, the stay on evictions, from my current knowledge only applies to residential units. Office, retail, etc is still fair game and business as usual. Of course, we'll always try and work with tenants. Eviction is always the last resort. And as mentioned elsewhere in response to this very broad statement, they'll eventually get burned if they think ignoring rent is an option.", "replies": [{"id": "flcs5ta", "text": "wait let me get this straight. Do you actually think your going to be able to evict anybody in a time like this? You go and try to evict someone Bc they can\u2019t pay you Bc of the pandemic; you\u2019ll get laughed out of the room and spit on on your way out the door. There will be millions of missed and forgiven rent payments.\nBesides the fact that if you evict your tenant you will have a vacant space for a very long time. \n\nJust like everyone else, landlords are fucked, your only saving grace is the bank not making you pay a mortgage if you have one,", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "flcgt2d", "text": "As part of our group of companies, we have a Property Management division too. One 40 unit multi-tenant office property we manage produced our first such request. The tenant immediately jumped in and requested full abatement for 3 months (through July 1, 2020). We've been discussing how to approach his request. The landlord is willing to work with him, however, our initial internal discussions have lead to the following likely approaches:  \n\n\n1. The requirement to share financials and bank statements\n2. Complete abatement not possible, (no free rent). Short term discount/deferment with recapture language for when these times are behind us. Discount/Deferment will be evaluated every 30 days, so current discussion/approval would be for April rent only.\n3. Confidentiality component in discount/deferment agreement so as to not create news that spreads to every tenant in the building.\n4. A fixed-term extension with a personal guarantee will be required. (their multi-year lease just need last month, currently on a month-to-month)  \n\n\nThoughts/feedback?", "replies": [], "depth": 1}, {"id": "flmib5a", "text": "Well ask yourself, is their business currently open and operating like business as usual?  There goes your answer.", "replies": [], "depth": 1}]