We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Commercial rental and bankrupt landlord?
Options

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
-
yes you are right - it's called accepting a business risk0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards