The ‘no-brainer, win:win solution to address commercial rent arrears scenarios and enable landlords to gain a clear understanding of the financial position/viability of their tenants.
- How will the health of my portfolio be impacted by the pandemic?
- Where are the investment opportunities?
- Which parts of my portfolio are most at risk?
- How should my medium - long term location strategy change?
- How have my competitors' portfolios been impacted by the pandemic?
clearVIEWbi is a brand new service innovation for the commercial property market developed by Debt Squared as a result for the challenges thrown up by the pandemic, with over £6 billion worth of rent arrears currently active in the UK, and specifically the new legal restrictions placed upon landlords on their ability to address rent arrears situations.
Given the very latest government announcements that are pushing landlords and tenants to work together through an arbitration process in situations where there are rent arrears, the clearVIEWbi product aims to facilitate a negotiated agreement situation that provides the best possible win:win situation for both landlords and tenants.
The key premise underlining this innovative product is that Debt Squared, through its strategic partnership with SKSi will work with struggling tenants to fully assess their financial situation and develop options to help them maintain their existing tenancy whilst protecting the long-term interests of the landlord.
Using another strategic partner, The Local Data Company, we will also use up to date market intelligence and data for the local area to ensure that there is a fully rounded understanding by both parties relating to the commercial realities pertaining to a tenant’s situation and its long-term prognosis beyond the end of the pandemic.
This will ensure that:
- The landlord has a full and transparent view on the tenant’s financial situation.
- Tenants who are genuinely struggling came have confidence that their case is being effectively framed and presented to their landlords.
- Both landlords and tenants can have confidence that a professional and independent adviser has reviewed the particular situation and proposed the best possible look forward plan given a particular set of circumstances.
How does it work?
We offer a simple but effective three step process:
The landlord/agent will introduce SKSi as an independent financial advisor to the tenant, appointed to access current management accounts in order to establish the trading position and cash-flow of the business.
SKSi will conduct a free-of-charge review of the tenant’s accounts to assess the financial viability of the business and make recommendations to remedy their position. The Local Data Company will at the same time provide in depth analysis of market trends in the local market particularly as it pertains to commercial rents and occupancy so that the best possible informed decisions can be made.
Depending on the recommendation, either the landlord or tenant will instruct SKSi to take the necessary action.
What will it cost?
This will be situation dependent but any action will not incur cost for the landlord as these will be applied through the lease with the ability to add to any arrears. Though overtime this will result in the tenant picking up the bill, it will protect their tenure in the property with the landlord having renewed confidence that a sensible plan is in place that will protect their long-term interests safe in the knowledge that, despite current trading difficulties, they have a refreshed agreement with their tenant that both parties are committed to and avoids the zero sum game of outright confrontational conflict.