Newport Office

01633 251801

Pontypool Office

01495 763333

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Newport Office - 01633 251801

Pontypool Office - 01495 763333

Commercial property

For many landlords and tenants alike, the recent unprecedented slow-down in consumer spending has had a direct knock-on effect on property and especially on landlords.

In the last year many well known names have disappeared from the high street along with innumerable small businesses. For landlords these are worrying times. Freehold and leasehold prices have stalled at best and have dropped in some cases, but more worrying is the implication of having empty premises.

We act for many landlords who own all types of commercial properties from office blocks to factories to corner shops. Whilst the markets may be very different, the implications of losing tenants are the same. This circular is intended to advise landlords both on warning signs of tenants having difficulties and also, and more importantly, what can be done if the landlord is presented with a tenant who is in severe financial difficulty.

Warning Signs

Whilst tenants are paying rent, the landlord often does not pay much attention to the status of the tenant. However, when payment is delayed or a request is made for monthly rental payment rather than quarterly payment, the landlord should take immediate action. The typical warning signs that a tenant is in financial difficulty include:-

Pro-Active Steps by you the Landlord

The most effective way of ensuring that you are fully informed is to stay in regular contact with the tenant and create a direct line of communication with the person responsible for the property, if it is within an organisation, or the occupier direct;

You must act quickly if there is rental default. We are often contacted by client landlords when the tenant is in significant rental arrears. Often, by this stage, it is too late to take effective action if the tenant is in financial difficulties and the effort of paying back the arrears makes the business unviable. We always advise taking immediate action if any rent, insurance or service charge is paid late. This needn’t invoke a ‘heavy hand’ but a ‘helping hand’. Of course, if the helping hand is rejected then the heavy hand will be needed!

Remedies for the Landlord

In these uncertain times landlords must be pro-active in their approach to managing their tenants. If we can be of any assistance in dealing with tenant arrears or advice generally on Landlord and Tenant affairs please do not hesitate to contact us.