Chris Miller, Property Services Operations Manager
When everything is running smoothly, leasing property to commercial tenants can be very profitable.
But if rent payments stop, or worse – you find that your property is being used for illegal activity – the situation can escalate quickly and put your livelihood on the line.
With an unstable economy and businesses feeling the squeeze, what are your options if a tenant is unable to keep up with their rent obligations?
If you are looking to recover outstanding rent payments but not necessarily to end the tenancy, CRAR could be a good option for you. Our enforcement agents are authorised to recover unpaid commercial rent arrears without the need for a court order as soon as the payment is at least seven days overdue. This means that you can act fast to recover arrears or uncover what is happening with your property.
The tenant will be issued a Notice of Enforcement giving them 14 clear days to pay their overdue rent. If this timeframe expires without payment, our agents will attend the premises to retrieve the money owed or take steps to take control of goods.
Points to be aware of:
Sometimes the tenant’s circumstances mean there is no realistic prospect of recovering the rent arrears. You may then decide that the best course of action is to forfeit the lease. While this does mean accepting the loss of unpaid rent, this option allows you to regain control of the property before the situation escalates further.
Commercial lease forfeiture can be quick and effective. As long as your lease agreement includes a forfeiture clause for non-payment of rent, we should be able to help you take back possession of your property without the need to go to court.
It is important to be aware that our agents are not permitted to use force to remove tenants when conducting this process. This is why we attend outside of working hours to ensure the greatest chances of success.
We have also seen an increase in commercial properties being used for an entirely different type of commerce. In one recent job, our enforcement agents attended business premises to return possession to the landlord. On arrival, they quickly found that the server room within the property was actually home to a large number of cannabis plants.
In another case, we entered a property to secure possession but were met with a ‘booby trap’ of live electrical wires preventing entry to the other rooms in the building. The police were called to assist, and we discovered a large collection of cannabis plants being looked after by an individual who was unable to leave.
In the event that your tenant breaches a term of their agreement not relating to rent payment, you may be able to forfeit the lease on these grounds as long as the correct legal process is followed and notice served. We can talk you through your options according to your circumstances and help to determine how to move forwards.
Aside from rent arrears, there are many other ways a tenant can breach a commercial lease. For example, subletting, unauthorised alterations to the building, or using the property outside of its permitted use.
We understand that every case has a different set of circumstances and preferred outcomes for our clients. We treat every case on an individual basis and always with the utmost professionalism and sensitivity.
Our Property Services team deals with commercial forfeiture matters day in, day out, which means that we have the knowledge and experience to handle even the most difficult situations. If you have a problem with a commercial tenant and want to explore your options, we are on hand and happy to discuss the specifics of your case with you.
For more information on our property services, you can visit the web page, read our brochure, or get in touch with the team on 0161 925 1800 by email at property@wilsonandroe.com.
If you have any other type of Judgment or are unsure how to move forward with your application, please contact us and we will be happy to help.
You can speak to us by
telephone on 0161 925 1800,
by email at wr@wilsonandroe.com
or fill in our contact form here
