Commercial property landlords have much to consider in relation to what to do about tenants who are struggling to pay the rent. We have considered some relevant issues in recent blogs.
In the current Covid affected market, one commercial consideration they cannot ignore is that business rates relief on empty buildings is limited to only three months (six months for industrial units and warehousing) and most businesses must pay full business rates after that. This might be an important factor to bear in mind in any rent negotiations to retain existing tenants.
Business rates may not be payable depending on the nature and extent of any occupation and if premises are occupied for more than 6 weeks in any three month period and of course, there are business rates exemptions which apply such as charitable rate relief. It doesn’t take a crystal ball to anticipate that we are likely to see more High Street lets to charity shops and pop-up shops.
Here are some relevant links with useful information about business rates:
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This blog was prepared on 22 October 2020. It is not intended to be advice and should not be relied upon as such.