Covid 19 Rent Deferral Agreement

The impact of the COVID-19 pandemic has been felt in many sectors, with the real estate industry taking a big hit due to the economic downturn caused by the virus. Many tenants and landlords are struggling to keep up with their financial obligations, including rent payments.

To address this issue, many landlords are offering their tenants rent deferral agreements. A rent deferral agreement is a contract between the landlord and tenant, which allows for delayed rent payments without any added interest or other penalties.

The agreement is essentially an extension of the rent payment deadline, allowing tenants who are struggling financially due to COVID-19 to defer payment until they are in a better position to make payments. The length of time for deferral is usually agreed upon by both parties, depending on the tenant`s financial situation.

During this period of deferral, the tenant may be required to make partial payments towards their rent, or agree to a repayment plan for the outstanding balance.

It is important to note that a rent deferral agreement is not the same as rent forgiveness. Rent deferral means that the tenant is still liable for the outstanding rent, while rent forgiveness means that the landlord waives the tenant`s obligation to pay rent. However, some landlords may offer rent forgiveness in exceptional circumstances.

To ensure that both parties understand the terms and conditions of the rent deferral agreement, it is essential to have a written agreement signed by both parties. The agreement should clearly outline the agreed deferral period, the repayment plan, and any other terms and conditions that the parties have agreed to.

In conclusion, COVID-19 rent deferral agreements are a useful tool for landlords and tenants to mitigate the economic impact of the pandemic. While it may not be the perfect solution, it provides a temporary measure of relief for those who are struggling to make ends meet. Tenants and landlords are encouraged to work together and seek legal advice if necessary to ensure that they are protected by the agreement.