There is no denying the impact that the cost-of-living crisis is having on everyone; it’s affecting individuals, families and businesses in equal measure. If you are a commercial landlord, you will probably have considered the likelihood of businesses not being able to keep up with payments, leaving you out of pocket and chasing payments.
Businesses Struggling to Pay
With the rise in energy bills, a possible recession looming and the increasing cost of living, a lot of businesses are having to make hard decisions in regards to which bills they pay. Some businesses will close altogether, whereas others may be able to scrape by if they focus on paying some bills and leaving others. As a commercial landlord, you will want to make sure that you are a priority and that payments to you are top of the list. Otherwise, you could find yourself being owed money, which is sure to have a knock-on effect elsewhere.
Luckily, if this is the case, there are actions you can take to ensure you receive what you are owed. There are a range of things you can do to ensure you get what you are owed in the cost-of-living crisis.
Restrictions on Landlords Have Expired
During the COVID-19 lockdowns, there were limits on the actions commercial landlords could take against tenants. These were put into effect as part of the Coronavirus Act 2020, and the aim was to help businesses remain as tenants during a period of low income and lost trade. For example, the Coronavirus Act 2020 stated that leases could not be forfeited for non-payment of rent for a three-month period. If a business was unable to keep on top of rent payments, commercial landlords were not able to start eviction proceedings. This meant that many commercial landlords found themselves being owed money, but unable to do anything about it.
However, these restrictions have now expired, and commercial landlords can once again reclaim debts from business tenants. Therefore, if you are owed money during the cost-of-living crisis, you can certainly take steps towards reclaiming what is rightfully yours.
Commercial Landlord Debt Recovery Options
There are a number of debt recovery options for commercial landlords, so you won’t struggle to find a route that works for you. For a lot of landlords, negotiation and mediation are the ideal place to start. These aim to help you to reach an agreement with your debtors, such as coming up with a repayment plan, without having to take legal action. Commercial Rent Arrears Recovery (CRAR) is also an option, which is the legal process of recovering rent arrears by seizing goods and selling them.
To ensure you get what you are owed, choose Cobra Financial. We action a case within 48 hours, and we have recovered over £14m worth of debts for our clients in 2021 alone. To find out more about how our debt recovery agency can help, get in touch or give us a call on 0151 526 4222.