Backdated Lage Charges on Commercial Shop Rent

Smitho3

Hello all,

I am after a little advice really. For the past 4 years we have rented a shop from a landlord that is less than professional when conducting it's business practices (very emotionally driven). I guess we see more of that due to their office being next door to our shop!

Every month for 4 years we have sent a bank transfer of the rent to them but have not really paid attention to much to the due date. We have given them a completed direct debit mandate 4 times and not once have the used it. We, mistakenly took this, and the fact they never invoice nor chase payments as a "gentlemans" agreement and have continued in this fashion.

2 days ago the landlord came into the shop and rather abruptly asked for the rent to be paid immediately in full view of our customers. We agreed and said we would get it over to them.

One of the girls from the landlords then came in to "gossip" and told us they were looking at backdating last charges and are going throughall of our payments.

Yesterday the landlord returned with a letter of late fees for November's rent, this rent was already paid in november as was December's and now January's us too.

As late charges are surely a.mechanism to ensure you pay the current or any outstanding invoices on time, aside form blatent profiteering I see not logical reason for them to charge any fees on historical rent.

What I need to know now is can they do this? Or are they only able to charge late fees on currently overdue rent?

Thanks for reading.

L

bris

You are bound by your contract, you need to read it and see what it says about late payments and the fees involved.


If it's in the contract then you don't have a leg to stand on as a commercial lease is all about the contract and they can go back 6 years on any payments due.

Smitho3

bris wrote: »

You are bound by your contract, you need to read it and see what it says about late payments and the fees involved.


If it's in the contract then you don't have a leg to stand on as a commercial lease is all about the contract and they can go back 6 years on any payments due.

Ouch @ 6 years! What about if the original lease had ended and we are in a new lease? Can they still act on the old one?

Our lease is a standard one, 4% a day until paid etc.... let's hope they are reasonable. We have never once received an invoice or a late reminder and they have failed to set up the direct debit on numerous occasions. I will argue that with them as we have tried to set up an automated system, if we are busy we sometimes forget to send the money.

Thanks for the info though, means I am going to be less in shock when they eventually send us an £800 bill for late fees

Mattygroves2

Set up a standing order with your own bank for future payments so you know they are paid on time.

Unless they are a landlord with a number of properties I'm surprised they have even offered you a direct debit form. It involves quite alot of paperwork their end and isn't cheap unless you're collecting alot of payments each month.

Savvy_Sue

I wonder if this is the classic confusion between standing orders and direct debits, which are very different animals! You can set up a standing order yourself, and keep control of it: Direct Debits have their uses but the payee needs to be authorised to received them.