Has your tenant asked to pay rent monthly

In the current economic climate trading conditions for some bussiness is difficult.  More and more tenant's are approaching landlords asking to pay rent monthly rather than quarterly in advance.   Should a landlord agree?

Richard Pullen, Director of Pullen Associates, says that 'as a landlord you should be very careful as to what you agree as this can have major implications in the future.   Some tenants are clearly struggling and therefore it is in the interest of the landlord to work with tenants to help them with cash-flow to ensure that the tenant can continue in business and as a result the landlord retains their income.  On the other hand some tenants are jumping on the 'band-wagon' when they are trading well in market places which are more active than others.'

If a landlord agrees monthly rental payments, this should only been considered if the basis of the rental payments is carefully documented between the parties.  Failure to do so could put the landlord in a difficult position if the tenant defaults in their monthly payments.   Richard Pullen recommends that Landlords should seek profressional advice from a commercial property consultant or solicitor before agreeing to a change in the payment arrangements with a tenant. 

Pullen Associates is well placed to advise and assist landlords and tenants with regards to such property management issues recognising that both parties have to be commercial in their approach.