Are landlords bearing the brunt of the Covid crisis?

With the cash flow problems being experienced by many businesses as a result of the lockdown, it is often only essential debts that are being paid. Rent, it seems, is not seen as essential, and this clearly presents a problem for commercial landlords.

The same is true in the residential sector where many are receiving partial payments at best, yet landlords still need to make their mortgage payments.

In both cases landlords may also have the added burden of reduced income due to furloughed staff.

The current mothballing of all civil business (barring “urgent” matters) by the Scottish Court Service and the First Tier Tribunal of Scotland may be seen as commendable by all good tenants out there, who have found themselves unable to pay their rent solely due to these current difficulties. The same can be said of the increased notice provisions introduced by the Coronavirus (Scotland) Bill.

But what about all the other cases involving pre-existing arrears which were built up prior to the coronavirus striking? The landlords can do little at present to protect themselves, their property or their finances. The First Tier Tribunal have continued all current business (that is, defended AND undefended applications) until July/August. They are not processing any new Applications.

While all of the recent measures introduced to protect us from the effects of the coronavirus can be seen as commendable, it does strike me that perhaps the interests of landlords with longstanding debts have been forgotten in all of this.  Many rely on that rental income derived from their properties to meet their mortgage requirements, now more than ever.

If you are a landlord and are experiencing difficulties in collecting rental payments, my team and I would be delighted to assist.

Please direct any queries to me at the following email address; dalexander@gilsongray.co.uk or by phoning me on the following number; 07841 920 089.

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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.