Monday, 13 April 2020 News
Mass rent default
As we move forward into week four of the coronavirus outbreak and lockdown by the government, thousands of businesses in the UK and Ireland are planning to or are in the process of withholding or considering withholding rents depending, when these have been demanded.
This will not be a one off, but an ongoing process as the economy is rebuilt and changes to the new way of living and working in the coming months and years.
Those mostly affected are the non-essential business who may well have virtually Zero cash flow coming in to meet operational expenses.
Even essential businesses that are open and operating are now seeing a tailing of in revenues as spending reduces and their costs rise due to the effects of physical distancing/new working practises and the rise of operational costs.
Consumers are planning for the post furlough period and into the potential redundancy / restructuring phases in the second half of 2020 and beyond. "If you don't need it. don't buy it or spend it" as a friend of mine said to me the other day.
In Northern Ireland the next rent quarter date is the 1 May 2020 with different dates in different areas of the UK and Ireland.
Landlords and tenants are locked in frantic negotiations depending when rents are due and this will only intensify as the rest of the year progresses. Not paying rent is not really a choice for some, it's just a basic piece of economic necessity they have to do or consider.
Banks, lenders, landlords and tenants and those involved in the pyramid of property need to be open to change and flexibility. We will get through this if we talk, negotiate and work together.
Those that don't will I fear be left behind.
If you need guidance and help to negotiate your way though this period give me a call.....I personally don't think a three month rent free period will be enough for all to survive.....its a restructure.