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Commercial rental and bankrupt landlord?
maxlan
Posts: 17 Forumite
Hi, this hasn't happened, but I'm concerned it could, and want to understand the risk exposure.
As a small business, we rent some office space. There was a "service retainer" charge (basically a deposit).
As this isn't a private rental the normal restrictions about holding it in escrow don't seem to apply. So that money is now the landlord's money.
IF the landlord goes bankrupt, presumably we don't get it back? (other than as a normal creditor might be able to reclaim some tiny part of it)
And we can't get into the building because landlord isn't paying the security staff to open the doors any more. (Until the receivers sort something out.)
Am I roughly right??
As a small business, we rent some office space. There was a "service retainer" charge (basically a deposit).
As this isn't a private rental the normal restrictions about holding it in escrow don't seem to apply. So that money is now the landlord's money.
IF the landlord goes bankrupt, presumably we don't get it back? (other than as a normal creditor might be able to reclaim some tiny part of it)
And we can't get into the building because landlord isn't paying the security staff to open the doors any more. (Until the receivers sort something out.)
Am I roughly right??
0
Comments
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yes you are right - it's called accepting a business risk0
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