You’ll have no doubt seen in the news recently, that all current covid restrictions are set to be going out of the window in England. Even the requirement to isolate after a positive test is being scrapped.
It seems as though we’re going to have to learn to live with this virus, much like we do with the flu.
This doesn’t mean that #TeamCES are planning to scrap our dedication to safe and sensible enforcement, but it does mean that changes are afoot in terms of what we can and can’t do, especially with regards to commercial enforcement.
From the 25th March 2022, all covid restrictions for commercial rent arrears and forfeitures will come to an end. Whilst this doesn’t mean we can start enforcing on any arrears that occurred during the covid period, it does mean we can enforce on any arrears built up before the arrival of covid, and on any future arrears too.
Any debt accrued during the covid period has been (or will be) ring fenced by the Government, with the expectation that landlords and creditors should enter into negotiations with their tenants. When these negotiations lead to a legally binding arbitration rule (in an ideal world, of course) the tenant will then have to pay off some of their arrears as an ‘add on’ to their normal monthly obligations.
This is just how it has to work, paying it off bit by bit.
For this process, #TeamCES don’t need to get involved, but where no agreement can be made, it could be time to give us a call.
If tenants are unable to make the extra payments necessary, it shouldn’t take long to identify whether your tenants’ businesses are profitable or not. In many cases, this process will highlight certain businesses that should probably have closed their doors already.
You can’t help but admire the stoicism of carrying on, in many ways, but the reality of the situation is that many of these businesses have been doing little more than flogging dead horses and hanging on in there, right up until the last.
And that’s where we come in.
From the 25th March, our certificated enforcement agents will be allowed to collect outstanding rent and follow through with forfeiture on commercial leases. Again, this is only for issues that have arisen outside of the covid period, and that’s such an important distinction to make.
If your tenant is due to pay their rent in advance however, as long as that rent is due after the 25th March, #TeamCES will be able to go in and enforce on the debt in an attempt to collect the rent.
We’re ready and waiting should you need us.
No one wants an empty commercial property, but no one wants a tenant with a non profitable business either.
How long can you afford to wait and how many more ‘chances’ can you afford to give your tenant?
Enter negotiations, reach agreements, decide on payment plans, but remember, #TeamCES are here to serve our clients with experience, expertise and efficiency.