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Updated about 5 years ago on . Most recent reply

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Carl A.
  • Ann Arbor, MI
12
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Large dental tenant demanding 90 days abatement

Carl A.
  • Ann Arbor, MI
Posted

Hi all

I have a commercial rental with a large national dental tenant (they have about 200 clinics nationally).  They sent a letter out that is summarized as follows:  Due to the forced shutdown, we will not pay rent for 90 days, but we will offer a lease extension for 90 days at the end of the term, and there is nothing you can do about it.  They also included a lease addendum for me to sign to agree with those terms.  I’m in Michigan and there is no order prohibiting landlords from collecting rent. 

Is anyone else in this situation and what are you doing?  Thanks in advance!

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
63,605
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Joe Villeneuve:

Don't sign it.  Give then their 90 days, but in addition to the 90 day lease extension, add a ??% penalty late payment for the 90 days, with an additional line that states a daily late fee for any days past the first 90 late days.

Joe this is happening nation wide to virtually every dental practice..  this landlord would be absolutly nuts to move against that strong of a tenant and create a vacancy cost way more in lost revenue than 3 months of rent.. I mean who is going to replace them.. this is stepping over dollars to chase pennies.. it really is..  Landlords can be their own worst enemy.. 

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JLH Capital Partners

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