Business office rent + utilities

forbsie09

Hi,
I have a small business, a temp recruitment agency where I supply chefs / catering staff, obviously we have no business at the moment, but my landlord is still demanding full rent payment, which I pay quarterly in advance, I already paid at end of February - for March to May, but due to lockdown and ofcourse having no business due the hotels restaurants being closed, I have not used my office since before lockdown ! so, my question is, is there a ruling saying that landlords cant insist on full rent on commercial lets such as my office ? I have asked for a rent break where I was hoping to get some rent free period or at least 50% off, I am not looking for a "rent holiday" where I will have to pay it all ! But he is still sending me rent demand for the next quarter !
Can you advise please
Also, with utilities, or in particular, BT, who are also insisting I pay "FULL" monthly rent for telephone and broadband ! it is virtually impossible to actually call BT and speak with someone ! I have tried many times, being on hold for up to two hours, so the only way to contact them is by email, I have emailed them asking for a "business manager" to call me, also asking if I can have some relief on my monthly bill as I am NOT using the office, therefore not using the telephone or broadband - they have not, and will NOT call me, but have said by return email, they will NOT give me ANY reduction on my monthly telephone and broadband ! is there anything that says that huge companies such as BT - who, incidentally made over £2.7bn pre-tax profit last year ! can or even must, give business some relief during these very trying and tough times ?

Any advice will be much appreciated.
Regards,
Ian Forbes

daveyjp

You have a contract to pay rent, you therefore need to pay it.  Lease forfeiture action is currently on hold, but only until 30 June.  If you have debt for rent the reposession could happen on 1 July.

Have you accessed any of the Government support currently available? 

holly1991

I have a similar situation although not paying the rent at the moment I think my landlord will want the whole lot when I return even though I’m currently not using any services they pay for water electric etc but i do pay them BT phone line which I have had to divert as I can’t have access the building where my business is, and the BT bill was ridiculous today, try talking to an adviser on live chat for BT it’s quicker plus they email u the conversation so u Have records only thing BT could do was look at setting me up a new cheaper contract which then ties me in (out of contract) and with my business being within someone else’s I’m not confident enough they will even bother reopening hope this helps a little 

Grumpy_chap

There is no rule that requires either landlords or utility companies (no matter how big or small their businesses are) to waive the fees that are due under agreed contracts.  The services remain available and you can choose to use them if you wish.  Your only hope in these regards is to engage in dialogue and seek to reach an amicable outcome.

Have you explored and taken advantage of the many Government funding sources that are available?

holly1991

I agree that services in my name i.e the phone line (out of fixed contract) still needs to be paid as yes I am still connected and using it to try and salvage my business, where as the room I run my business from (also out of fixed contract) , where I am not using The utilities which are included within the rent and in my case I don’t even have access to the room while the building it’s in is closed like I said I’m currently not being charged but would say OP should really try to come to an arrangement if can’t get any other help like rate relief (like myself) there’s so many of us out there that have put our hearts and soaks into our little businesses for it all to be ripped away 👎🏻

Grumpy_chap

@holly1991 - your position seems slightly different to the OP's.  You don't have access to the building so the landlord is failing to deliver their side of the contract and rent break while you cannot access the building seems fair.

The OP appears to still have access so rent break is not such a strong case.

holly1991

Sorry grumpy chap I read OP slightly wrong regarding access .. although I’m glad u agree with me on my circumstance 😊😂 

forbsie09

Thanks all for your comments, all of which I more or less knew, I was just hoping that there may have been something in place by government saying that commercial landlords must give some rent relief if tenants cannot use their room / space
Although I have access to the building, that is purely and ONLY to collect mail ! I am not allowed to use the building or even travel to and from my office as I am NOT an essential worker.
Landlords will be able to get loan/ mortgage repayments breaks so they should pass something on !
I do not have a lease, I am in "on licence" not sure if there are different laws / rules compared to a lease ?
Re utilities, like holly1991, my rent includes utilities, well heat and light, but as there is no-one in  the building, these bills will be very minimum for the landlord anyway ! but re BT, they are just a massively greedy greedy company, my broadband is out of agreement, and my telephone is due in January next year, I most definitely will not be renewing with BT - I have had many issues in the past with BT, and they are impossible to get through to / actually speak with ! which is more than ridiculous for a "communications" company ! my issues were NOT resolved, which lost me business / money, BT simply do NOT care, only now I am getting calls from BT because my broadband is due for renewal, when I mention about my previous issues and current situation, I am told it is nothing to do with him or her, maybe so, but I always ask if they can get someone to call me re my issues (in the past) BUT no-one ever calls ! like I said, BT are NOT interested is solving problems (previously) or even trying to help, ALL they want is more money - a very greedy and horrible company to deal with !!!

Jeremy535897

Landlords may well get mortgage breaks, but they will end up paying more. It is not the same as a rent holiday. Commercial tenants, like residential tenants, cannot be evicted up to 30 June for non-payment of rent.

You need to look at the terms of your agreement. If, for example, it includes the provision of utilities that have been turned off, or if you cannot access the premises, they may be in breach of the terms. There is no "government relief",as it would involve interfering in individual arrangements.

BT is still providing the service it is contracted to supply, and the best you can do is not renew.

There is a discretionary grant fund for those who have not benefited from other grants. See
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/885011/local-authority-discretionary-grants-fund-guidance-local-government.pdf

Grumpy_chap

forbsie09 said:

Although I have access to the building, that is purely and ONLY to collect mail ! I am not allowed to use the building or even travel to and from my office as I am NOT an essential worker.

Is the access to only collect mail your decision, or a stipulation on you by the landlord?  If the latter, you may be able to argue that the landlord is not fulfilling their side of the agreement to provide office space.

Are you in Scotland?  In England, the rules allow you to go to work if you cannot work form home, nothing about being an essential worker.  In Scotland, I think the rules are worded slightly different and the 'essential worker' thing might be in there.  If the restriction on access is because you cannot get to the office rather than the office being closed, that is not the landlord failing to provide access.

daveyjp

Despite what any piece of paper states it is highly unlikely you have a licence.  Amateur Landlords generally do this to try and avoid Landlord and Tenant Act protection.

If the building is vacant resulting in gas and electricity use being reduced this should be reflected in the service charge adjustment for next year.