Commercial landlords 'should offer monthly payments'

29 March 2010

Written by Steve Olejnik

Business mortgage holders who lease retail units should allow their tenants to pay rent in monthly instalments.

This is according to spokesperson for the British Retail Consortium Richard Dodd, who explained that landlords should find it "perfectly acceptable" for tenants to pay this way.

His comments follow a statement issued by the British Property Federation on Friday (March 16th), which pledged support for retail occupiers during the difficult economic climate.

Many tenants pay their rent in quarterly instalments, the latest of which is thought to have revealed the cost of the recession for a number of retailers.

According to Mr Dodd, there should be the option of monthly terms, which some retailers would benefit from.

"We think that landlords should be prepared to show flexibility on that and should be prepared to offer monthly terms even on existing leases," he claimed.

The spokesperson said this would help cash flow for many tenants because some do not have the finance to produce quarterly rent in advance.

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