A report by Property Week has indicated that property investors and institutions have suffered a shortfall of more than £1.5bn in rental income that was due to be collected for the second quarter.
Almost a fifth of rent that was due at the March quarter rent day had not been collected 90 days later, according to research from Remit Consulting.
The research, which is based on the analysis of 125,000 leases, found that more than half of the shortfall due comes from the retail sector which has been significantly affected by the Coronavirus pandemic.
Can you appoint Clearway for CRAR?
Here is what you need to know:
Rent and service charges are often paid on the usual Quarter Days in advance. For example the rent due on 25th March is for the period from 25th March to 24th June inclusive. In some old leases payment can be in arrears, and in such cases the rent due on 26th March is for the period from 29th December to 26th March inclusive.
If you have a tenant who was in arrears prior to the March Quarter, this should in theory get us to 189 days’ worth of rent unpaid. In this instance we can issue a Notice of Enforcement TODAY, if not then we need to defer issuing CRAR until we crystallise 189 days of unpaid rent.
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Our team of experienced and qualified advisors are still in place to provide advice, support and provide recovery action where require.
At this very sensitive and worrying time for all we are keen to ensure that you have all the facts and support you need to make the very best decision for your business and your clients.
The government will be reviewing the current COVID-19 restrictions and releasing a further update on the 30th September. Keep update with the very latest changing legislation with Clearway.
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