On the 22 February, David Eminton and Nicola Davies from the Paris Smith Property Litigation team gave a talk on what options are available to landlords to recover unpaid rent during the pandemic to Savills Hotel, Leisure and Trade teams. With some statistics reporting something in the region of £3 billion of rent arrears in the hospitality industry and the moratorium on forfeiture looking ever likely to be extended this month, landlords are becoming increasingly impatient and wanting to act. David and Nicola finished the talk by setting out some practical tips on what steps can be taken in anticipation of the forfeiture moratorium coming to an end. Chris Hollis from our Commercial Litigation team shared his helpful tips, in particular the pros/cons of applying for a judgment for the arrears at court with a view to hopefully securing a quick default judgment against the tenant.
Watch the talk here:
Many landlords are facing over four quarters of either unpaid rent or reduced rent from their tenants. In order to assist our commercial landlord clients during this challenging time we have prepared a table summarising the remedies available to take against tenants who are not paying their rent and some practical tips to help get through this difficult period. It is important to note that the first step for all landlords is to adopt the Government Code of Practice for Commercial Leases. Whilst the Code is voluntary it is a good guide of what the courts will be expecting the parties to have followed and adhered to during these unprecedented times.
Some of the options available to recover rent arrears are:
Which option is right for you? Download a full summary of all the options available to recover unpaid rent from commercial tenants.
This article follows on from our blog in July 2020 setting out the implications of the Coronavirus Act on commercial leases. Both articles are based on the laws in England and Wales and not Scotland which has different options that we have not covered.