Tips for landlords & tenants
The current economic downturn has claimed many high street retailers and left landlords with tenants not able to pay rent or fulfil lease obligations.
Property Associate at KBL Solicitors, Helen Marsh advises “times are undoubtedly tough at the moment, but there are steps both tenants and landlords can take to help alleviate the situation”.
“A tenant in difficulty could take advantage of a break clause giving an early exit from the lease to end their rental liability and could re-negotiate better terms in the current market.
Tenants could also try to negotiate some kind of concession – many landlords would be willing to consider this if it means their tenant stays solvent and able to pay rent”.
Helen continues “from the landlord’s perspective, if its tenant does not pay its rent it may be possible to withdraw monies from a rent deposit , collect rent direct from a sub-tenant, send in a bailiff or sue to recover rent owing – the threat of a CCJ on the record may be enough to prompt the tenant into paying”.
“Tough times call for tough measures by landlords & tenants alike” says Helen “many retailers have cash flow problems and are asking their landlords if they can pay rent on a monthly basis instead of quarterly. If a revised payment schedule or other concessions are agreed both parties should co-operate in properly documenting the agreement to ensure that they are both properly protected.”