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Earlier this month, the UK Government announced the current restrictions on commercial evictions will be extended until 25 March 2022.
Another tough decision. This might save a few tenants by allowing commercial rent arrears to be ringfenced and guiding both parties to reach an agreeable repayment plan. But will this encourage tenants to sit on their hands for a few more months?
If the tenant ends up in an insolvency process, the landlord is likely to be left ‘high and dry’, having had no real opportunity to pursue the outstanding rent or look for a new tenant. On the face of it, this looks a bit unfair on landlords. They can get a bad reputation, which possibly their perceived aggressive behaviour towards tenants in the past has come back to haunt them.
An opportunity to open dialogue
On the other side of the coin, this might present a good opportunity for tenants to prepare further forecasts, look at different scenarios when their turnover starts to come back, and identify additional breathing space. It’s a real opportunity to have more than one plan in place, depending on the rate of recovery over the next few months.
Over the last year we’ve seen landlords refusing to engage with tenants, and likewise, tenants refusing to engage with landlords. In all of these instances someone has lost out. Now more than ever, an open dialogue is vital. There’s no reason why an agreement can’t be reached but this is awfully difficult if no one will speak to each other!
As always, the team at TruSolv is happy to discuss any specific situation you may be dealing with. Having an independent view can bring real clarity, and sometimes identify more options than you might think. Contact us in confidence – 0808 196 8676 or email help@trusolv.co.uk.
