A detailed picture of COVID-19’s affect on rent collection
According to a recent survey by Remit Consulting, reported exclusively by Property Week, less than half the rent due on March quarter day was paid on the day.
Just 48% of rent due was paid on March quarter day in comparison to last year’s 79%, increasing to 57% seven days later versus 90% in March 2019.
Concern growing over low service charge collection
Debt Squared Group have been advised that property managers for over 18,000 properties are becoming particularly concerned by the low levels of service charge collection, which will make it harder to keep up with the costs of running buildings during the UK lockdown period which has now been extended for at least another 3-weeks. The situation is especially difficult for shopping centres, which have to be kept open for the key businesses that are still trading.
Service charge collection rates are even weaker than rent collection rates. Just 38% was collected on rent quarter day, rising to 48% seven days later. By comparison, 73% of the service charge due was paid on the day last year, rising to 80% a week later.
Should you require any advice on best steps to be taken during this difficult time, please visit our information hub here or alternatively call or email our team who will be happy to help.
June Quarter Day rent collection
It is hoped that March rent collection levels will continue to rise over the coming weeks as rent comes in from tenants that have agreed to monthly payments. However, fears are that rent collection at the next quarterly rent day in June will be lower than in March as the financial impact of the lockdown on commercial tenants becomes more acute.
Debt Squared Protective Warrants of Control – Launching soon
Debt Squared will soon be launching a new Protective Warrant to protect landlords and to assist tenants who are requiring time to pay in this uncertain time.
For more information on how to approach your commercial tenants in the coming weeks or for regular weekly updates leading up to June Quarter Day and the release of Protective Warrants sign up to our mailing list here or email email@example.com
We are here to help
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.