As the COVID-19 pandemic continues to wreak havoc on the global economy, many tenants are struggling to keep up with their rent payments. In response to this crisis, the Canadian government has introduced the Canada Emergency Commercial Rent Assistance (CECRA) program to help tenants negotiate rent reduction agreements with their landlords.

If you are a tenant who is interested in participating in the CECRA program, it is important to understand what a rent reduction agreement entails and how you can prepare for the negotiation process. In this article, we will provide a sample rent reduction agreement and offer some tips for negotiating with your landlord.

Sample Rent Reduction Agreement

[Your Name]

[Your Business Name and Address]

[Landlord`s Name]

[Landlord`s Business Name and Address]

Dear [Landlord`s Name],

I am writing to request a rent reduction for my business, [Your Business Name], in light of the COVID-19 pandemic. As you are aware, my business has been severely impacted by the pandemic and I am struggling to keep up with my rent payments.

I am applying for the Canada Emergency Commercial Rent Assistance (CECRA) program and would like to negotiate a rent reduction agreement with you to cover the remainder of my rent that will not be covered by the program.

I am proposing the following terms for the rent reduction agreement:

1. Rent reduction period: [Insert the dates for which you are requesting rent reduction]

2. Rent reduction amount: [Insert the amount you would like your rent to be reduced by]

3. Rent payment schedule: [Insert the new payment schedule you propose, such as a reduced monthly payment or deferred payments]

4. Other terms: [Insert any additional terms or conditions you would like to include in the agreement, such as a clause that allows you to opt out of the agreement if the CECRA program is extended beyond the stated period]

I believe that these terms are fair and reasonable given the current economic climate and the impact of the pandemic on my business. I am willing to work with you to come up with a mutually agreeable solution and I hope that we can come to a resolution that benefits both of us.

Thank you for your consideration.


[Your Name]

Tips for Negotiating with Your Landlord

Negotiating a rent reduction agreement with your landlord can be a daunting task, especially if you have never done it before. Here are some tips to help you prepare for the negotiation process:

1. Gather information: Before you approach your landlord, gather as much information as you can about the CECRA program and your eligibility for it. This will help you present a strong case for why you need a rent reduction.

2. Be prepared to compromise: Your landlord may not be willing to agree to your proposed terms, so be prepared to negotiate and compromise. Consider alternative solutions that might be acceptable to both parties, such as a temporary rent deferral or a smaller rent reduction.

3. Be professional and courteous: Remember that your landlord is also facing financial challenges during this difficult time. Approach the negotiation process with a professional and courteous attitude, and try to find a solution that benefits both parties.

4. Put everything in writing: Once you have agreed on the terms of the rent reduction agreement, make sure to put everything in writing and have both parties sign it. This will ensure that everyone is on the same page and that there are no misunderstandings later on.

In conclusion, negotiating a rent reduction agreement with your landlord can be a challenging process, but it is essential if you are struggling to keep up with your rent payments during the COVID-19 pandemic. By following these tips and using our sample rent reduction agreement as a guide, you can increase your chances of reaching a mutually acceptable solution.