{"id":38122,"date":"2020-06-09T11:43:48","date_gmt":"2020-06-09T08:43:48","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=38122"},"modified":"2025-05-22T13:09:35","modified_gmt":"2025-05-22T10:09:35","slug":"how-covid-19-is-affecting-commercial-landlords-tenants","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2020\/06\/09\/how-covid-19-is-affecting-commercial-landlords-tenants\/","title":{"rendered":"How COVID-19 Is Affecting Commercial Landlords & Tenants"},"content":{"rendered":"\n

NYC-based boutique law firm Pardalis & Nohavicka<\/a> brings the latest legal updates from the world of real estate to PropertyShark. Pardalis & Nohavicka handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions, currently litigating and representing clients throughout the United States and around the world.<\/em><\/strong><\/p>\n\n\n\n

The pandemic has upended the lives of business owners, retailers and landlords alike. However, the latest decisions from officials have given commercial landlords the short end of the stick \u2014 and may be cause for legal concerns.<\/p>\n\n\n\n

<\/span>Evictions Halted<\/span><\/h1>\n\n\n\n

New York state has halted all residential and commercial evictions until August 20. Gov. Cuomo also promised that New Yorkers would not be forced to leave their homes or businesses <\/strong>for being unable to pay rent during COVID-19. In the meantime, landlords will have to find a way to continue operating their properties with severely reduced operating cash.<\/p>\n\n\n\n

During this moratorium, the state has also taken steps to ban any late-payment fees <\/strong>and allow renters to use their security deposits as payment <\/strong>(the security deposits would be repaid over time). In the interim, landlords may serve rent demands, but they are not allowed to move forward with eviction proceedings.<\/p>\n\n\n\n

<\/span>Personal Liability Bill<\/span><\/h1>\n\n\n\n

Last week, New York City Mayor, Bill de Blasio, signed the City Council\u2019s Personal Liability Bill, which prohibits commercial landlords from enforcing personal guarantees on defaults that arose between March 7, 2020, and September 30, 2020. This measure provides a shield for businesses to protect their personal assets from landlords.<\/p>\n\n\n\n

The suspension applies to businesses that were affected by mandated closures and service limitations in the Governor\u2019s Executive Orders. Specifically, it covers:<\/p>\n\n\n\n