
Commercial leases, rents and evictions in the days of COVID-19 are certainly a hot topic among North Carolina businesses. COVID-19 has placed many services and industries at a standstill. Even the brightest economic minds cannot currently predict what the aftermath of this will bring. Social distancing requirements affect not just commercial tenants struggling to pay rent, but also commercial landlords who themselves may be small businesses with limited reserves.
Many North Carolina sheriffs are placing restrictions on evictions. Small claims courts are closed and not hearing summary ejectments. Communities are looking to commercial landlords to be accommodating. Still, landlords have their own expenses and burdens. Unlike some states, North Carolina has not placed a moratorium on rent. Further, the CARES Act provides some eviction relief for residential tenants but does not do so for commercial tenants. This means that rents are still due unless the landlord and tenant have worked out alternative arrangements. Landlords can still file for summary ejectment, the matters just will not be heard until later.
This means that once social distancing requirements are lifted, a wave of summery ejectment hearings and evictions will occur. Commercial tenants will be forced to close their businesses. Commercial landlords will be faced with the harsh realities of a poor economy and vacant spaces.
A commercial tenant may be well served by negotiating an alternative payment arrangement with its landlord. Possible solutions may include a payment plan where the overdue rents are distributed over time. The key is to ensure that the payment arrangement is memorialized in writing and signed by both the commercial landlord and tenant. The writing should specifically outline the terms of the arrangement. It should state how much is due and when, which payments are being deferred and anything else that is important to the parties. This new payment arrangement document will be an amendment to the lease agreement. Therefore, it is important to follow the requirements for amendments as prescribed by the existing lease agreement.
COVID-19 unquestionably presents difficult challenges for both commercial tenants and landlords. Eventually, commercial landlords may be able to evict their struggling tenants, but what is next for their vacant space?
If you have any questions or would like to discuss the topic of this blog further, please feel free to email Aleksandra E. Anderson at a.anderson@andersonlegalnc.com or visit www.andersonlegalnc.com.
*This blog post does not constitute legal advice. Reading or in any way accessing this blog post does not form a client-attorney relationship between you and Anderson Legal, PLLC or any of its attorney(s).
The post Commercial Leases, Rents and Evictions in the Days of COVID-19 appeared first on Anderson Legal – Commercial and Construction Litigation – North Carolina.
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Aleksandra E. Anderson
As Managing Attorney, Aleksandra E. Anderson spent years litigating on behalf of large corporations and banks in matters related to construction, banking, real estate, commercial leasing, and contracts. Now, Mrs. Anderson is using her experience to represent North Carolina families, individuals, and small businesses.
Mrs. Anderson combines the legal excellence of a large firm with the personal approach of a smaller practice to ensure that her clients receive outstanding legal services. Mrs. Anderson graduated from Emory University with a Bachelor of Science in neuroscience and behavioral biology. She went on to receive her law degree from UNC School of Law.
In her free time, Mrs. Anderson enjoys spending time with her family and hiking in western North Carolina.
Johnny Payne is an associate attorney at Anderson Legal. He spent two years on the mock trial team at his law school, where he won an outstanding advocacy award. He is also a member of the Order of the Barristers. Mr. Payne has a passion for civil litigation and looks to serve his clients to the best of his ability.
Mr. Payne graduated from the University of South Florida with Bachelor of Science in business economics. He spent two years working in finance, and then went on to receive his law degree from Georgia State University College of Law.
In his free time, Mr. Payne enjoys reading, time at the beach, visiting museums, and spending time outdoors.
Ms. Braman has been a legal assistant since May of 1983. She has worked in a variety of legal niches including real estate law and family law.
Since 2009, Ms. Braman has focused her career on complex litigation related to: construction defects, contracts disputes, real estate disputes, and professional liability disputes.
In her free time, Ms. Braman loves the beach, reading, country line dancing, and spending time with her two grandchildren.
Ms. Braman has been a legal assistant since May of 1983. She has worked in a variety of legal niches including real estate law and family law.
Since 2009, Ms. Braman has focused her career on complex litigation related to: construction defects, contracts disputes, real estate disputes, and professional liability disputes.
In her free time, Ms. Braman loves the beach, reading, country line dancing, and spending time with her two grandchildren.
Johnny Payne is an associate attorney at Anderson Legal. He spent two years on the mock trial team at his law school, where he won an outstanding advocacy award. He is also a member of the Order of the Barristers. Mr. Payne has a passion for civil litigation and looks to serve his clients to the best of his ability.
Mr. Payne graduated from the University of South Florida with Bachelor of Science in business economics. He spent two years working in finance, and then went on to receive his law degree from Georgia State University College of Law.
In his free time, Mr. Payne enjoys reading, time at the beach, visiting museums, and spending time outdoors.
Aleksandra E. Anderson
As Managing Attorney, Aleksandra E. Anderson spent years litigating on behalf of large corporations and banks in matters related to construction, banking, real estate, commercial leasing, and contracts. Now, Mrs. Anderson is using her experience to represent North Carolina families, individuals, and small businesses.
Mrs. Anderson combines the legal excellence of a large firm with the personal approach of a smaller practice to ensure that her clients receive outstanding legal services. Mrs. Anderson graduated from Emory University with a Bachelor of Science in neuroscience and behavioral biology. She went on to receive her law degree from UNC School of Law.
In her free time, Mrs. Anderson enjoys spending time with her family and hiking in western North Carolina.
Cole Booth is an associate attorney at Anderson Legal. He is an experienced civil litigator who has previously practiced in the areas of employment law and insurance defense. Mr. Booth has worked with North Carolina individuals, families, and corporations to both assert and defend their interests.
Prior to becoming an attorney, Mr. Booth worked in a variety of areas, including pharmaceuticals, public relations, professional journalism, and research. He previously obtained a Bachelor's Degree in Journalism from the University of Alabama, and went on to obtain a law degree from UNC School of Law.
In his free time, Mr. Booth enjoys cooking, tinkering with computers, watching old movies, and spending quality time with his spouse.
Cole Booth is an associate attorney at Anderson Legal. He is an experienced civil litigator who has previously practiced in the areas of employment law and insurance defense. Mr. Booth has worked with North Carolina individuals, families, and corporations to both assert and defend their interests.
Prior to becoming an attorney, Mr. Booth worked in a variety of areas, including pharmaceuticals, public relations, professional journalism, and research. He previously obtained a Bachelor's Degree in Journalism from the University of Alabama, and went on to obtain a law degree from UNC School of Law.
In his free time, Mr. Booth enjoys cooking, tinkering with computers, watching old movies, and spending quality time with his spouse.