Should a commercial landlord agree to accept monthly rent?

In these difficult economic times tenants of commercial premises are increasingly asking landlords to permit them to pay rent monthly instead of quarterly to assist cash flow. However, landlords need to be wary. For further guidance on commercial property law contact us by phone or email.

Should a commercial landlord agree to accept monthly rent when a tenant is struggling to pay on a quarterly basis?

This question is commonly asked by tenants who are experiencing economic or cash-flow difficulties.

Obviously each case needs to be considered on its own merits and our lawyers are hugely experienced in advising commercial landlords on these issues.

However, landlords do need to exercise care when departing from the terms of a commercial lease.

In this scenario for instance it is important to consider whether the landlord’s property is in charge to a bank. If it is then it is usual for the terms of lending to assume that rent will be paid quarterly. So, if a landlord accepts monthly rent they could inadvertently commit a breach of the terms of their lending.

You can avoid such risks by taking expert legal advice. Contact our specialist commercial property team by phone or email.

 

Nick Arthur

Nick Arthur

Nick Arthur is the hugely experienced head of Slee Blackwell's commercial department. His expertise includes dealing with company share acquisitions and disposals, partnerships and site assembly. Nick has been involved in multi-million pound deals in both the corporate and the property sector.
Nick Arthur

Nick Arthur

Nick Arthur is the hugely experienced head of Slee Blackwell's commercial department. His expertise includes dealing with company share acquisitions and disposals, partnerships and site assembly. Nick has been involved in multi-million pound deals in both the corporate and the property sector.

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Call the Slee Blackwell helpline on 0333 888 0404