{"id":184813,"date":"2023-12-05T02:39:52","date_gmt":"2023-12-05T02:39:52","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=184813"},"modified":"2023-12-06T02:53:51","modified_gmt":"2023-12-06T02:53:51","slug":"tenant-in-rent-arrears","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/tenant-in-rent-arrears\/","title":{"rendered":"What to Do if Your Commercial Tenant is in Rent Arrears"},"content":{"rendered":"\n

Unfortunately, as a commercial landlord, you may face rent arrears from a commercial tenant. If you find yourself in this situation, there are options to recover the rent arrears your tenant owes you. Your commercial property is your asset and legal interest, so you want to ensure that you benefit from your investment rather than lose money. This article will explain what you can do if your commercial tenant is in rent arrears.<\/p>\n\n\n

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Cheatsheet for UK Leasing Terms<\/div>\n
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This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Enter a Payment Agreement<\/h2>\n\n\n\n

If you wish to maintain an amicable relationship with your commercial tenant, and their rent arrears does not appear to be a serious long-term problem, consider arranging a payment agreement with your tenant. A payment agreement will set out instalments, which is the amount your tenant will pay you at set times. While in place, you are unlikely to be able to carry out alternative options to recover rent. <\/p>\n\n\n\n

A payment agreement should also state that if your commercial tenant defaults on the agreement, you will proceed with other alternatives to cover the missing rent.<\/p>\n\n\n\n

Withdraw From the Rent Deposit<\/h2>\n\n\n\n

If your commercial tenant gives you a rent deposit, the terms of the Rent Deposit Deed<\/a> should detail whether and how you can draw upon this for any rent arrears. Deducting amounts from the rent deposit can be a practical option where the missing rent amounts to one or two defaults rather than an accumulation of rent arrears. However, you must give your tenant notice if you wish to draw on the rent deposit. Your tenant will then have to replace any amount you withdraw from the deposit.\u00a0<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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