Why can commercial retail landlords get no help even if they have had to cut their tenant’s rent?

Potbellypig

I'm going to assume private commercial landlords aren't going to be very high on the 'who do we feel sorry for' list. 

Jeremy535897

The initial coronavirus grants were given to businesses with premises because of their fixed costs, a substantial proportion of which would be rent. The idea was to assist those businesses with their bills, including paying rent, so that was the way the government was appearing to help commercial landlords. Unfortunately, in many cases, the business owners said that they couldn't pay the rent, even with the grants.

superbigal

Are you down to your last million yet ?

heidihi11

Ha! I wish! The rent was not very high, in fact already below market value as we have always been very fair landlords but I think that people forget that rental income is an income for a lot of people..can be a sole income. We are not all millionaires, far from it! 

Thrugelmir

heidihi11 said:

Ha! I wish! The rent was not very high, in fact already below market value as we have always been very fair landlords but I think that people forget that rental income is an income for a lot of people..can be a sole income. We are not all millionaires, far from it! 

Likely any investment decision. It comes down to personal choice. A high dependency on a single source of income will naturally carry a higher degree of risk. 

MattMattMattUK

heidihi11 said:

Well I disagree.

You have a right do disagree, but you asked why and I told you what the official line was and why SEISS was not available. 

heidihi11 said:

What will the government do when landlords simply can’t afford to do this anymore...most shops will be left empty and then what?! 

When landlords can not afford to own retail property any more, they will have to sell it, it will be purchased by someone else, who either can afford to operate it, or who will repurpose it into something which can be used. As in store shopping/retail is a dying business most shops will be converted to other premises, the government does not need to do anything, the markets will take their course regardless. 

hunnie

We used the Council property grants to pay our commercial landlord as I think that was what they meant for.

JJC1956

Jeremy535897 said:

The initial coronavirus grants were given to businesses with premises because of their fixed costs, a substantial proportion of which would be rent. The idea was to assist those businesses with their bills, including paying rent, so that was the way the government was appearing to help commercial landlords. Unfortunately, in many cases, the business owners said that they couldn't pay the rent, even with the grants.

My Accountant (whom specialises in Hospitality) told me that most of the Pubs on his books were being made to pay the business grants to the various pub companies, (towards the rent)  otherwise their leases would be forfeited, he said one of his clients got a £,25,000 grant, and walked away from his pub, sent the keys back in the post and kept the grant. 

yksi

It comes down to the same issues that residential landlords have had to deal with really. Except that it's probably easier to put your foot down when it's commercial, not rely on suspended s21s. The tenant, who wants to trade and earn income, has to pay their rent. The owner isn't obligated to absorb the rent just because the tenant is struggling (OP suggested they had to, but I disagree). It might have been difficult in practice, but you did have a choice. Tenant has to pay rent to someone to keep trading and if you'd not backed down, they would have made a decision: find the money or vacate the shop. And they might have somehow arranged the rent if forced into that decision.

Or they might not. At which point you lose a tenant and reassess whether this is a viable investment for you. Then you still have options: re-let, renovate, sell, or even change of use, as MattMattMattUK indicated (something residential landlords can't do). Planning law has changed so that many shops can be changed to offices or even housing.

Backtrack to the question you didn't ask but the one that you should actually be addressing. Is this a viable investment for you (or would your money be better put somewhere else)?

GHolmesAdmin

heidihi11 said:

Why is it that commercial retail landlords can get no help from the government when we have been forced to suspend our rental income in order to help keep our tenants going during the Covid crisis? 

That's capitalism for you.