Answer
Jul 10, 2025 - 01:10 AM
Yes. So going back to the slide deck, the rent coverage does need to be renewed and not necessarily annually. It's going to be based on their lease term. So as I mentioned, we can ensure leases up to 36 months, three years. So if it is a 36-month lease, upon renewal of that 36-month lease, three years down the line, they would need to renew. With that being said, and I didn't touch on this during the presentation, you can customize that renewal, right? So if they've performed well over that lease term, there were no late you know, late payments, no issues with communication, no concerns. You can shrink that down if you want. You can also forego it. And I never recommend this. I like to highlight this in my conversations because really, even though the risk drops a little bit in year two or year three, there's still a 65%, you know, risk of them defaulting. And so, Your concerns, even though you've had a great relationship, initially to get qualified, they needed that policy. So my recommendation is always shrink it down. Give them a little bit of, you know, benefit of the doubt maybe, but shrink that down and still maintain some level of coverage so that you have protection going forward.
