Managing Tenants During Emergency Situations
In an emergency situation Landlords and Tenants may need to make temporary changes to their tenancy arrangements. The Landlord may agree to offer a rent reduction or other concession for a specified period of time. The Landlord may also need to change the management arrangements for the Tenant’s Building, for example by suspending or adding to the services provided by the Landlord and/or introducing new regulations with which the Tenant must comply.
These Emergency Management Letters cover rent concessions, service variations, issuing of regulations and the closure of the common parts of a building or the whole building.
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Frequently Asked Questions
I want to give my commercial tenant a temporary rent reduction. How do I document it safely? +
Use a rent concession letter, not a permanent variation. It records a time limited reduction or deferral, keeps the lease rent intact and states that the concession is personal and can be withdrawn. That way you help the tenant without permanently lowering the rent or waiving arrears. This sub-folder has emergency management letters for concessions.
Can I temporarily change or suspend building services in an emergency? +
You can, but tell tenants in writing and check the lease. A service variation letter records that you are suspending, reducing or adding services for a defined period and explains any effect on the service charge. Clear communication reduces the risk of disputes and breach claims. This sub-folder has letters for varying services in an emergency.
Do I need to keep charging the full service charge if some services stop? +
You should only recover your proper actual cost of the services you provide, so if services are suspended the charge should reflect that. The lease governs recovery and RICS best practice expects transparency about what tenants are paying for. Explain any adjustment in writing. This sub-folder's letters help you communicate service and charge changes.
Can I close the common parts or the whole building temporarily? +
You may, if you have grounds and follow the lease, but a closure can affect the tenant's access and quiet enjoyment, so it should be justified, proportionate and clearly communicated. A closure letter records the reason, scope and duration. This sub-folder has letters for closing common parts or the whole building in an emergency.
If I introduce new building rules, must the tenant follow them? +
Only if the lease lets you make regulations and the new rules are reasonable and properly notified. Many leases allow the landlord to issue regulations for the management of the building, which then bind the tenant. Issue them in writing and keep them proportionate. This sub-folder has letters for issuing regulations to tenants.
