Rent Holiday – It’s wise to be thorough
In this article, Patrick Downes considers Rent Holidays, particularly relevant in these uncertain times and post Covid-19
Maintaining a healthy landlord and tenant relationships has always been the best approach in good times and bad. So it is currently important not to over react, or take a short term view when a rent holiday is requested.
Whilst landlords have a business to run just as much as tenants do, a tenants request for a rent holiday must be taken seriously and carefully thought through.
DECIDE ON YOUR PRIORITIES
- Your own bank loans and commitments
- Income levels required
- Short term need v long term
- What benefits can you ask for
- Desire to change existing lease/change of clauses
- Long term aim for the property
- Risk of vacant property & for how long
- Rates bill
WHAT ARE YOUR VIEWS OF THE TENANT
- Will rent holiday solve the problem
- How long is requested or required
- Are they taking the right advice and good advice
- Quality of tenant and building usage
- Historic relationships
We cannot be sure what the market will do post Covid 19 and the cost of having vacant property, including security costs, can be very high.
But remember – read the lease, what does it say?
Careful analysis is key and a speedy response/solution is important.
More Information: Lease Advisory
Patrick Downes is lead director at PACT Property & Assets Ltd.
RICS qualified and with more than 30 years experience in the property sector, Patrick also has extensive business management skills having previously been Managing Partner of a National practice for 14 years. He applies both his property and business skills as a Non-Executive Property Advisor in all client sectors, dealing with both operational and investment portfolios for Landlords and Tenants.
T: 01242 399500
M: 07467 532171
Patrick Downes MRICS