Commercial Properties - difficulties paying rent

With the March quarter day for rent payments upon us and tenant insolvencies going through the roof, timely advice on what to do if you are a tenant struggling to meet a rent payment or a landlord concerned about a build up of arrears will pay dividends in the longer term.

Like it or not, the economic landscape is such that even national high street chains are struggling to meet their commitments against a background of poor trading.

Insolvencies are on the increase and landlords are facing tough choices about recovering overdue rent.

Yet there are steps that can be taken to ease the burden for both the tenant and the landlord, including rent holidays and moving rent payments on to a monthly or even more frequent basis to help avoid arrears building up in the first place, to keep the tenant trading, and to ensure that the landlords premises do not become vacant.

To some extent the parties position will be determined by whether a Liquidator or Administrator has been appointed because statutory provisions will then apply and the scope for the parties to make arrangements between themselves may be limited. 

These are uncertain times for both landlords and tenants.  Much of the insolvency legislation has not been tested in practice and there are many pitfalls for both sides.

The pragmatic approach should always be to try to negotiate a satisfactory position for both parties before it is too late to do so.  Seeking professional advice at an early stage when the first signs of difficulty arise can go a considerable way to alleviating a situation which might otherwise deteriorate beyond recovery.

Pengillys have substantial experience in this area on behalf of both landlords and tenants and can provide practical solutions there the situation has not deteriorated too far or practical advice on how best to secure the best result if difficulties have already arisen.