An article from property week has reported that property investors and institutions have suffered 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.
Can you appoint Debt Squared this June Quarter for CRAR?
Amendments to Commercial Rent Arrears Recovery (CRAR) that came into force 24 June until 30 September 2020.
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 24th June is for the period from 24th June to 28th September inclusive. In some old leases payment can be in arrears, and in such cases the rent due on 24th June is for the period from 26th March to 24th June 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 rent unpaid.
Temporary Rule Changes
The Government have extended the moratorium on commercial tenant rent evictions from 30 June until 30 September 2020, meaning we cannot forfeit a lease for non-payment of rent during this period.