Commercial Rent Arrears Collection
Has your Commercial Tenant Failed to Pay their rent?
As specialists in commercial rent recovery, Frontline Collections receives numerous enquiries relating to the recovery of overdue commercial rent from problem tenants. Bad Commercial Rent arrears cost commercial landlords and managing agents thousands of pounds each year, whether it be from a shop, factory, office premises, etc.
Immediate action is required to secure outstanding payment and to ensure tenants do not abscond without paying, to avoid arrears escalating and if possible to try to retain the tenant. Delaying action on overdue commercial rent can often result in a total loss of rent and potentially costly damage to the property as is quite often the case.
Frontline Collections with their partners are able to provide a tailored solution to suit each client's needs and maximise the return on any instruction.
Recovery of Commercial Rent Arrears
Under common law, Frontline Collections and its partners can be legally instructed just one day after the rent is due. We guarantee immediate action and can quite often have our Agents at your premises to collect the overdue amount within 24 hours. We appreciate the importance of maintaining the relationship between landlord and tenant when securing payment, and we act only in a professional manner. This is so as not to damage any existing relationships.
Quick & Effective Actions
On receipt of instruction and all associated paperwork, one of our Agents will attend the premises usually within 24-48 hours maximum to collect full payment of the amount outstanding. The Collection of unpaid Commercial rent arrears can be a tricky task so we apply due diligence from the start.
If payment is not secured on the day, the tenant will be requested to enter into a 'Walking Possession' agreement. This legal binding document enables the agent to list and secure all assets within the premises that could possibly be sold at a later date in order to satisfy any amounts owing.
By the tenant entering into a 'Walking Possession' agreement, the goods are held in the custody of the law and are protected from seizure by certain other creditors, who also may be attempting to recover their outstanding debts from your tenant. This action helps both landlord and tenant, as the tenant can continue to trade and possibly resolve their financial difficulties.
The tenant then has the opportunity to make payment within the timescale stated by the client. This allows the distrained goods to remain on the premises and encourages an amicable solution.
If payment is not received within the allotted time, our enforcement agents will return to the premises with a view to removing the distrained goods with immediate effect. At this point, payment is often forthcoming. In the unlikely event that the tenant is still unwilling to settle the arrears, the goods are removed and sent to public auction. The outstanding arrears are deducted from the proceeds of the sale.
On average, less than 5% of cases proceed to auction.
For further information on how we can help you or your small business with debt collection, call us now on 0333 043 4425