My landlord has refused to move me to monthly rents, but I could only send a cheque for the first month of this quarter – which has been cashed. What is my legal position and what can I do to mitigate any risk?
Just because a landlord has cashed a cheque for a month’s rent doesn’t mean it has accepted monthly rent payments. Landlords are entitled to cash any cheque that comes to them even if they still expect further payment.
A tenant is in breach of its lease terms by paying a month’s rent without consent from its landlord to switch payment terms and a tenant has very little defence if its landlord sues and sends the bailiffs.
However, Tim Reid, senior associate for real estate disputes at law firm Lovells, explains, until the bailiff removes stock there will always be a window of opportunity within which to negotiate. He says: “Assuming, as is usual, that the bailiff is taking walking possession you have a chance to reach a settlement with the landlord before the bailiff returns, but you might have to pick up the bailiff’s fees.”
For retailers facing the nightmare situation of bailiffs taking possession of stock, there are things that can be done to minimise losses as a last resort. Reid says: “Keep as much stock outside the subject premises – perhaps in another store where you are still paying full rent.”
Certain equipment such as computers, tills or scanners that are left switched on cannot legally be taken by bailiffs under the Walking Possessions Act. If the worst comes to the worst and you do expect a visit from the bailiffs, leave such equipment running.
No comments yet