Should a commercial landlord agree to accept monthly rent when a tenant is struggling to pay on a quarterly basis?
Tenants who are experiencing economic or cash-flow difficulties often ask their landlord to agree to accept rent on a monthly basis, rather than paying quarterly. But if you are a landlord who is faced with such a request, then you need to consider whether there any legal consequences of agreeing to it?
Obviously each case needs to be considered on its own merits but in broad terms 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 own lending.
Our experienced commercial property team will be happy to discuss the issues with you and look at how the position can be dealt with safely in a way that will not prejudice your position.
