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New York City- Increased lease modifications have led some landlords down a rabbit hole as they coordinate with tenants about delinquent rent payments and or make changes to lease obligations over the next 30 to 60 days. With ever changing needs to lease agreements as the pandemic unfolds, real estate stakeholders are calling for technology that allows for quick access to documents for modification, Marc Betesh, a former commercial lease lawyer and CEO of Visual Lease, a provider of lease accounting software, tells GlobeSt.com.
"The problem people are having is when they go through files, important pieces of information are missing," Betesh said.
While it is clear a mix of tenants may or may not pay rent, as rent changes pile up, landlords are trying to keep track of which leaseholders will have to pay back rent in three months or when the coronavirus subsides, and which tenants may have to go altogether. And due to enforced social isolation policies, operators are communicating with tenants via email about important lease document changes, which has made it difficult to account for these details to execute document changes, according to Betesh.
"These are very important transactions that need to be managed and observed over time. This is a risk issue more than a financial issue," he said. "You might put yourself in a position to not operate."
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Mariah Brown
Mariah Brown is the New York Bureau Chief and Real Estate Reporter for GlobeSt.com, covering the New York Metro area, Northeast region and national real estate trends. She is responsible for producing multi-media content, including articles, podcasts and video. Before joining the GlobeSt team, she served as a New York Times fellow, reported for the Associated Press in New York and Philadelphia and several other New York City-based outlets.
