COMMERCIAL tenants who cannot pay their rent because of coronavirus will be protected from eviction if they miss a payment in the next three months, that’s the verdict of Redditch chartered surveyors and valuers John Truslove.
Joint managing director Ian Parker, acknowledged the situation was ‘very fluid’ and said: “We fully appreciate that the impact of Covid-19 on business is causing serious concern both among owners and landlords.
“What we do know, at the time of writing, is that commercial tenants who cannot pay their rent because of Covid-19 will be protected from eviction if they miss a payment in the next three months.
“The important thing is to grasp the nettle early and start a conversation with your landlord or your tenant.
“Regardless of what your legal documents such as a lease lay down, these are unprecedented times and they call for common sense solutions.
“Many landlords and tenants are already having conversations and reaching voluntary arrangements about rental payments due shortly, and the government has recognised that businesses face huge problems, not least in relation to cashflow in the coming months.”
He said that, current lease terms aside, it is important that both parties record what they have voluntarily agreed in a deed of variation or side letter.
Other concerns facing businesses include obligations to carry out works on a premises within a certain timescale, often three months, and clauses that insist that a property cannot be left vacant and unattended.
“Again common sense needs to rule the day,” said Mr Parker.
“Clearly if workers cannot attend the business premises, required remedial works will have to be put on hold, and if we are all being told to stay at home, then obviously the workplace is going to be empty.
“But once again, it is important to negotiate a sensible agreement, and then to your legal advisors to ensure such an agreement is carefully and correctly drafted.
“A scribbled note signed by both parties is simply not sufficient.
“Agreements may have to be revisited. Agreeing something for three months is one thing, but we do not at present know how long the lockdown is going to continue. When we return to work, it is important to factor in a repayment period that is achievable and sustainable and does not simply tip the business over the edge, after we are all back at work.”
