[nice_james_bond]

Hey I am a small business owner - due to economic situation - the business has been down like 40-50% from two years before. So could not pay rent on time since the revenue has dropped by 40-50%. We notified land lord - wanted to renegotiate the rent - but landlord said they could not renegotiate - but allowed us to pay the rent when ever we could with out any penalty or late fees. Since it has been 20 months plus - the accumulated due on past rent is close to $20,000 - $25,000. In the mean time we approached the land lord regarding reducing rent and explaining the prob - but never got any results. The close by complexes and all over the industry - other land lords have renegotiated the lease and reduced rents like 20-30%. We are still paying the rent - as and when we could as per prior discussion.

Situation 1:
Now suddenly we got an email from the agent - saying send us your current financial statements - the land lord is trying to possibly reduce the rent moving forward and work on the past due rent as well. Please note POSSIBLY - so they may or may not. In order to qualify we need your current financials. The neighboring store owner has sent the financials but received a letter from land lord - pay the past due in 10 days or you will be liable for any attorenys fees and interests on the amount - if we need to follow legal process. I have sent my papers a week later - my guess is I would also receive the same letter. The land lord really does not care about the tenants. Few tenants have tried to talk - but land lord is very firm - has not reduced the rent or worked with anyone to help out. In certain cases tenants have filed bankruptcy to get out of this mess. We have sustained it so far - now I am trying to plan ahead - and see what possible actions could the land lard take - how I could prepare myself to face the situations. We have good credit - do not want to mess it up - mean time there is no revenue from business to pay out this past due rent. Just trying to stay ahead of the game. Any suggestions and ideas would be appreciated.


Situation 2:
There is an opinion that 'Land lord' is trying to get a judgement against the past rent - in the mean time allow us to stay - with the original rent or reduced rent moving forwad - I still have 6 years in the lease. If that happens - what are the implications - how could I be prepared and protect myself in this siutation. If we present all the numbers at the judgement hearing - and explain the situation - would that help? Or irrespective of what the economy and lowered revenue would the court just issue the judgement based on the plain past due rent? What are the steps landlord needs to do before getting a judgement and how I should react in terms of not getting into any bad situation.

I am new to this legal things - so would really appreciate any ideas or suggestion from knowlegable people in this field.

[ScottGem]

First, do you have any of this agreement (to pay as you can) in writing?

A lease is a contract. You agreed to that contract and are required to abide by it. You can try to renegotiate, but the landlord is under no obligation to do so. The request for the financials sounds like he is looking for stimulus money to supplement the rent. That's why you need to "qualify".

He may want to get a judgment to protect what you owe. Then renegotiate because he may realize he won't get the same rent is you go out of business.

[nice_james_bond]

First, do you have any of this agreement (to pay as you can) in writing? Thanks for your response.

This - pay as you can - was communicated by an email - from the Accounts Receivable Manager of the Land lord's Corporate Office- to my personal Email. Just an email response - which I have a copy - not sure if it would be considered as a agreement document - as part of the lease.

[Fr_Chuck]

Yes, if you owe past due rents they may sue for it if it appears you are not going to get up to paying regular rent.

What any other landlord can or will do, does not matter, if this one does not, ( or can not) reduce your rent, Perhaps his payments to the bank is more than rent being paid right now, you have no idea.

Unless they agree to get you out of the lease, you are bound by it