Tenant Rent Payments - March 2020
We will remind all tenants of their contractual liability and the need to follow and seek details of financial support available from the Government and Local Authorities. Tenants will also be encouraged to approach their own business interruption insurers and in due course them will be asked to provide conformation of cover they have and their insurers response.
Any rent concessions or deferred payments need to be formally agreed by the client and formally documented. The overriding principle at this stage will be for any payment plans or deferred payments will be to provide short term support rather than forgoing contractual rent payments.
Where tenants seek a concession due to their financial difficulties, we will ask for a brief impact statement with outline business case as supporting evidence, including details of their current management accounts.
Tenants will need to illustrate that no dividends, or similar, will be payable to the tenant’s owners or investors for the duration of any rent concession Tenants should also seek to spread the burden of support across other creditors including their suppliers, HMRC and their banks.
Where requests are made for service charge cessation or utility recharges these will be treated in the same way as rent payments and will need to be formally agreed with the client. It is essential that we maintain services and protect building assets, pay suppliers and mitigate legal and compliance risks. Therefore, Tandem will ask all clients to provide suitable funding and if necessary additional funds equivalent to the sums that cannot be recovered from tenants.
We very much hope that all of clients and customers, partners and friends remain well and safe and we look forward to seeing you all again as soon as we can.
Lisa Riva & John Jones
Tandem Senior Partners
firstname.lastname@example.org - 07889 466 753
email@example.com - 07809 125 415