Letter Written by Company to Reduce the Rent Due to Losses

What is a request letter to reduce the rent?

Every business is subject to boom and recession times. And every business has its strategies to deal with them. Facing loss is a reality of life and the business world. However, sometimes loss increases to the extent that a business finds it difficult to survive in the market. In that situation, every business owner thinks of those ways in which the cost can be reduced. One of the most viable ways to reduce the cost of operation is to ask the landlord to reduce the rent that a company is obligated to pay every month or every 6 months. For this purpose, anyone in the company can write a request letter to the landlord on behalf of that company.

How important it is to request a rent reduction?

Many people start their business by leasing the property of someone else because of not having funds to buy a building at the start. As business starts growing, these people find it affordable to pay the rent amount. They keep paying the rent until they feel that they can afford to buy their building.

Sometimes, the situation becomes such that these businessmen can’t pay the rent. For example, if we have a look at the current situation prevailing across the world, we can see that the pandemic has largely affected the entire world including businesses. These businesses are unable to pay their utility bills now and have completely fallen into recession. In this testing time, all a business can do is contacting the landlord requesting him to reduce the rent.

How to write the request letter to the landlord for a rent reduction?

When any company writes this request letter to the landlord, its priority is to make it accepted by the landlord. This happens when the content of the letter is written in such a way that it can convince the landlord to lend some support to the company and understand its situation. Considering the importance of writing this letter ineffective way, we are giving you some tips that you can follow:

  • Start the letter with a request for reduction:

It should be kept in mind that your landlord is not your friend. So, when you are writing to him on behalf of a company, make sure that your tone is formal, and you say what is relevant and needed to say. For this, as you start this letter; make it clear to the reader why you are writing this letter. Also, mention the address of the property you are referring to.

  • Tell the landlord that why you are writing?

Your landlord might want to know what happened to the company that has compelled the company to ask for the reduction. Since you are writing this letter because your company has suffered losses, talk about all the losses and mention the reason for those losses.

  • Tell how much reduction you need:

How much reduction you want in rent usually depends on the number of losses you have endured. If you have received partial loss and you want to keep a safe side, you can ask for a 10 or 20 percent reduction. However, if the loss is too much for you, you can ask for more reductions in rent.

  • Write till when you need reduction:

If you are going through a testing time, you will soon be recovered from it with the right strategies. You are not asking for permanent reduction. Therefore, tell the landlord that for how many months, you want to pay the reduced rent.

  • Thank the landlord in advance:

Even if you are not sure about whether your request will be approved or not, thank the recipient to show your positive attitude towards him.

Sample letter


Name of the recipient:

RE: Request to reduce the rent due to financial crises

Dear (name of the landlord),

This letter is being written about a monthly rent payment of $2000 for ABC located in (mention the name of the city).

All company is going through a serious financial crisis because of COVID-19. We were forced to close our all production units to curtail the growth of the COVID-19 virus. Because of this, the company is unable to generate the revenue that is used to generate earlier. The company has also laid off many employees because of not being able to pay them their salary. It has become difficult for the company to survive in the current financial situation. A reduction in the rent amount can help our company be back on its feet. 

I know that you might also be facing some financial issues due to the prevailing situation. I am looking forward to your response to a rent reduction.


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File: Word (.docx) 2007+ and iPad
Size 21 Kb