June Quarter Rent Day: advice for landlords

Wed 24 June 2020

It’s no secret that COVID-19 pandemic has had a significant impact on the economy, meaning that many businesses, even prior to lockdown, have struggled to meet their rental obligations and landlords have been left out of pocket. On the 25^th March 2020, commercial tenants across the country were grated relief on their payments, a lifeline for retailers, businesses and of course, our high street. However, with the June quarter rent day upon us, where does this leave landlords?

Where landlords have not been able to recover rent and cannot afford to offer financial support to their tenants, they have looked to the legal system for assistance. However, the relief for tenants means that legal recovery is extremely restricted.

The ban on proceedings such as forfeiture and statutory demands has been extended until 30^th September 2020 giving tenants some protection over the June and September quarter days.  The only remedies left appear to be either CCJ’s or deferred enforcement.

A new Landlord and Tenant code has been introduced. The code encourages tenants to pay rent in full if they are in a position to do so but also emphasis the importance of landlords and tenants working together to recover from the effects of COVID-19; the code is voluntary. Points for a landlord to consider include:

• Speak to your tenant regularly and understand their business
• If a delay in rent is absolutely necessary come to arrangements to protect both the landlord and tenant
• Speak to your lender about what assistance they may be able to provide you however payment holidays will still incur interest
• Consider whether there are guarantor provisions in the lease
• Do all you can to make sure common areas in your building are Covid safe so that business can return as quickly as it is safe to do so.

If you would like to discuss any particular property or portfolio with Paul, please get in touch.