Rented business premises - reant areas, notice from Agency

gettingready

Asking for a friend - possibly someone can help out with advise?

Friend renting premises for a small business. Business was slow so currently 2 months behind with rent (£1300 per month so £2600 areas. Went in to pey this month's rent (£1300) and was told by the agency they may give notice because of the rent arears.

Friend not able to clear the areas all at once - not sure where to go for advice?

Thanks a lot.

Wywth

gettingready wrote: »

Asking for a friend - possibly someone can help out with advise?

Friend renting premises for a small business. Business was slow so currently 2 months behind with rent (£1300 per month so £2600 areas. Went in to pey this month's rent (£1300) and was told by the agency they may give notice because of the rent arears.

Friend not able to clear the areas all at once - not sure where to go for advice?

Thanks a lot.

I would suggest they start with their accountant, and if in agreement, perhaps then approach their bank.

gettingready

Thanks but friend does not have an accountant I am afraid and bank is not happy to lend any money.

Friend went to CAB for advise today but they scheduled appointment for next Tuesday with some "Landlord Specialist" so will see what he/she says.

Just wondering is 2 months areas are enough for the Agency to give notice? They are within 1st year of a 2 year rental contract.

TheChillPill

Unless its a very popular, high demand, area - chances are they are saying it purely to get the arrears in check. Business premises are extremely difficult to let at the moment, so they're very unlikely to give notice for relatively small arrears.

I'd suggest either putting forward a date when the arrears are to be paid, or if that's not possible, agree to pay future rent on time plus a consideration for the 1 month outstanding (say an extra £100 toward the arrears). Simply explain that it was slower starting than expected, but is now picking up (assuming, of course, that is the case). I'll eat my hat if they don't agree to that.

gettingready

Thanks.

There is 2 months outstanding not 1 month I am afraid.

The areas hapened as the place was rented in a very bad state and the amount of work that needed to be done (including building work/electric etc) was much more than expected - "tenant" paid for all this and .. furnished the place/instaled new bathrooms etc etc.

The place as it is now is worth way more than it was when it was taken (both possible rental value or if the owner wanted to sell)on so I have a feeling Agency (they were aware of all the work that needed to be done and seen the transformation from ..hole to lovely place - at the tenant's cost) may think that they may try to rent it out for more now...

Need to see what is the legal stand here really.

notanewuser

gettingready wrote: »

Thanks.

There is 2 months outstanding not 1 month I am afraid.

The areas hapened as the place was rented in a very bad state and the amount of work that needed to be done (including building work/electric etc) was much more than expected - "tenant" paid for all this and .. furnished the place/instaled new bathrooms etc etc.

The place as it is now is worth way more than it was when it was taken on so I have a feeling Agency (they were aware of all the work that needed to be done and seen the transformation from ..hole to lovely place - at the tenant's cost) may think that they may try to rent it out for more now...

Need to see what is the legal stand here really.

:doh:

Why oh why do people do this?!

gettingready

I know, I know - I was asking/begging not to but it did happen/was done.

The place was a total dive, now it is done up as a really beautiful B&B with all building work done (including having to replaster some walls as well as install bathrooms,all new internal doors, put down new floors all over the place, install TV cables to all rooms etc etc)the furnishing etc etc - all paid by the "tenant".

Landlord/agency gave 2 months rent free "as a good will" when the place was taken on in August last year but due to amount (and cost) of work only started "trading" in December (so 4 months zero income with massive bills on top).

Anyway, to cut a long (very long) story short - the situation now with 2 months rent areas and Agency saying they may give notice...

Hmmm

notanewuser

He needs to reduce those arrears. Can he get some cash from an interest free credit card or something to loan to the business?

gettingready

Already up to ears in debts (loans/credic cards/catalogue/wonga/payday loans) as the work that was needed went way over the estimated budget. Like - planning to just change the walpaper but striping the old one realising the walls needed plastering etc etc

Yes, I know - very complicated but here we are now and need some solution.

Season starts now really, all guests very happy with place/quality/service and few advance bookings but need to know where one stands with those areas/angency threat of notice.

martindow

gettingready wrote: »

Already up to ears in debts (loans/credic cards/catalogue/wonga/payday loans)

It seems as if your friend has got problems generally, well beyond problems with rent. Payday loans that can't be paid off can quickly lead into a downward spiral of debt. I would suggest that he seeks some debt counselling.

gettingready

That is true, that is why the appointment with CAB was made for next Tuesday - to see about some advice.

But the business is really picking up so fingers crossed.