Is Your Tenant Likely To Go Into Administration?

In this blog, we are concentrating on "before the event" problems. A few thoughts whilst your tenant is still in apparent good health:-

1. Keep your friends close but your tenants closer still.  Try not to have a tenant failure come as a complete surprise.  That means keeping an active engagement with them or making sure that your managing agent does.  Depending on the size of the tenant's operation, it could be a quarterly call, maybe even an inspection and see if things look well on the ground.  Larger tenants, keep an eye on the press, particularly trade journals that may get a sniff of a problem before the wider world hears about it.
   
   
2. Monitor payment of rent timings.  If over a period of time rents starts to be paid later, it may be a pattern that could evidence pressure from the bank and looming issues for the future.