Recovering Accrued Debts from Tenants, Re-Establishing and Enforcing Lease Terms and Their Obligations
Each month CPT will identify a topic that is contentious, topical, or significant to the commercial property world. The style is a mixture of interview and chat; held over a lunchtime. The audience were encouraged to join in with questions or comments to create a valuable, practical update on the subject in an informal debate that digs into the nuances of the issues. This session will be discussing the present and the future picture of rent recovery.
Module Duration: 47 minutes
Please note there are no slides accompanying this recording.
Commercial landlords have been obliged to do much of the heavy lifting of supporting business through the Covid-19 pandemic, with all the main remedies for enforcement of rental payments suspended for no less than two years. It has not all been through compulsion, though. Most landlords have voluntarily assisted tenants by means of concession agreements and have not rushed to take advantage of remedies that have remained available to them. However, some businesses have taken advantage by withholding payment of rent even though they were able to afford it. Landlords perhaps should be given credit for their forbearance.
The restrictions imposed on landlords, and the voluntary support they have additionally offered, are not sustainable. What is to happen to accrued debt? At some stage the landlord or the shareholders will want the debts recovered. When might normal operating rules return in the enforcement of lease terms and obligations?
As we move towards the final lifting of almost all restrictions in March 2022, there will still be some hurdles to overcome. The Government is looking to beef up the Code of Practice, and there are proposals for compulsory arbitration. How must landlords negotiate these issues?
Like many other aspects of life, it appears the (post pandemic) COVID world is not the same as the world we had 20 months ago. If you practise in landlord and tenant work, these are issues you should engage with. So join this debate on 21 October.