With every sector feeling the effects of recession, the debate
on quarterly versus monthly rents and service charges is heating
up. This article takes a look at landlord and tenant considerations
in agreeing to such arrangements, how best to document them and
other initiatives emerging in response to current market
conditions.
The facts
In the current economic climate many tenants, particularly those
in the retail sector, are struggling to meet quarterly rent demands
and as a result landlords are under increasing pressure to accept
monthly payments of rent, and in many cases, service charge. With
many landlords themselves under financial constraints in the
current market, some are simply not in a position to agree to this.
Nevertheless, we are seeing increasing news of landlords and
tenants agreeing to measures such as monthly service charge/rents
and initiatives to drive down service charges. In some cases
landlords are seeking financial compensation for agreeing
