Rent Holiday: It's wise to be thorough - Patrick Downes, PACT Property & Assets Ltd
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.
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