When a landlord enters into a business lease with their tenant it is often the beginning of what is intended to be a long and happy contractual relationship.

However, the harsh reality is that businesses suffer rough patches from time to time and cash flow can be tight. Major contracts can be lost and making ends meet can be challenging.

It is often landlords that begin to suffer delayed, sporadic or non-payment of rent when tenants hit such times as tenants rely on their historic long standing relationship with their landlord to foster some flexibility while they try to trade through the cause of their current hardship. Landlords may hold a rent deposit to help safeguard and bridge such periods if they are short term, however, if the tenants business is facing a more fatal end to its trading times either the tenant or their creditors can place the business into some form of insolvency.

The moment that happens the Landlord’s right to forfeit a lease, take the premises back, evict occupants or clear plant and equipment become restricted. A Landlord’s rights and remedies vary between different forms of insolvency and caution needs to be taken as to options presented to landlords, as whilst the immediate reaction may be to get the property vacated and on the market for reletting, there are potential downsides with landlords immediately becoming responsible for future rates and utilities.

If you are a landlord with a tenant in arrears or in an insolvency situation or maybe you are a landlord about to enter into a new lease arrangement and want to know what steps can be taken to protect you as far as possible from such eventualities then Claire Cooper, in our Commercial Property team, can be contacted for further advice on 0121 227 3880.


Get In touch