Commercial Landlords the ‘Furlough’ question?
Peter Fowler • April 15, 2020
What should a landlord do if they are approached for a rent reduction?
So, what should a landlord do if approached by a tenant for rent relief?
Most retail shops, unless selling food, medicines or other essential goods, are going to be badly in need of assistance. The same applies to many manufacturing premises, but what about the service sector?
Lawyers, accountants and financial traders may have certain sectors of their business collapse, (residential conveyancing being an obvious example), but other sectors such as family, wills and probate may be showing an upturn.
What is clear is that many professional offices have taken advantage of the ‘furlough’ opportunity to cut overheads and receive Government support for 80% of salaries up to £2,500 per month for an initial three-month period. As salaries form a large proportion of any business overheads it may, in some cases, be used to preserve profits rather than it’s intended objective of retaining jobs. Liverpool FC with their ‘about-turn’ on the use of furlough, as they are one of the wealthiest football clubs in the world, is an extreme example.
It is also worth bearing in mind that there are business rate, VAT and PAYE holidays available to preserve many business cashflows.
In my view then, any landlord approached for a rent -holiday should as the following questions:-
- Please supply evidence of your reduction in income?
- How many staff have you furloughed and what is your saving in wages?
If the tenant is not prepared to offer such information, then it is reasonable to assume that their finances are such that their business is sustainable in the short-term and refuse any rent reduction. After all, when granting a lease, a landlord reasonably asks for references and financial information, so such a request is also reasonable.
Once in possession of all the financial facts the Landlord can make a value judgment on a rent holiday reduction or rent deferment until times are better.
Any such agreement should be in writing and ideally in the form of a Deed of variation of the lease.
We will, of course, be happy to provide advice in such circumstances.
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We are delighted to share that Woodstock Legal Services has been shortlisted for Conveyancing Firm of the Year - South of England at the Modern Law Conveyancing Awards 2026 . We are also proud to see Bethany Hudson , one of our Consultant Licensed Conveyancers, shortlisted for Rising Star of the Year. With our head office in Poole, Dorset, we are proud of our roots in the South West and the relationships we have built within the region’s property community. These shortlists recognise both the strength of our Residential Property team and the people behind the scenes who support our clients throughout their property journey. At Woodstock Legal Services, our focus has always been on building a conveyancing service that works for both our clients and our consultants. By bringing together experienced conveyancers with dedicated back-office support and the right infrastructure, we aim to make the process of buying and selling property as straightforward as possible, while giving our lawyers the flexibility and support to deliver excellent client care. Our connection to the South West remains an important part of who we are. Through relationships with local property professionals and organisations such as Poole Property Club , we continue to build connections within the property market while supporting clients across England and Wales. Over the past year, our Residential Property team has continued to grow, supported by investment in our people, processes and technology. Our dedicated back-office teams play an equally important role, helping keep transactions moving so our conveyancers can focus on their clients and the legal work that matters most. Being shortlisted for Conveyancing Firm of the Year in the South of England is a recognition of the collective effort behind our service, from the conveyancers working directly with clients to the teams supporting them behind the scenes. Car Jermyn Managing Director of Woodstock Legal Services, added: " I’m incredibly proud to see Woodstock Legal Services shortlisted for Conveyancing Firm of the Year and Bethany Hudson recognised as a Rising Star. Both awards reflect the quality of our lawyers and the commitment of the wider team supporting them. It’s great to see the work happening across our business recognised, particularly in the South of England, where our roots are firmly established. " A growing modern law firm As we continue to grow, we are always keen to speak with experienced lawyers who want to work differently, be properly supported, and be part of a collaborative community. Behind every successful consultant is the right firm. Click here to see why consultants choose Woodstock.
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