Overview

Why the change and will landlords agree to it?
Tenants have traditionally been obliged to pay rents quarterly and most leases require payments to be made in advance. This can pose a significant cash flow problem for tenants who have fallen upon hard times. Prior to the 'credit crunch', it would be fair to say that any break from this tradition would have been almost unimaginable.

However, many tenants, and in particular retailers, have been voicing their opinion that payment of rent quarterly in advance is no longer appropriate. Sir Philip Green, owner of the Arcadia Group, has been particularly vociferous. With the support of at
least 35 leading retailers, he has written to the UK's largest landlords demanding a wide ranging review of various lease provisions, including a review of what he claims is the 'archaic' way in which rent is currently paid. A number of institutional landlords have expressed a willingness to help tenants by accepting rent monthly. Some have been
less sympathetic, saying that tenants should be prepared to honour the payment terms to which they have signed up.

To read more, click 'View Briefing'