Tenant in industrial unit not paying rent

[surveyor]

Oi_Oi_Savaloy said:

Do your units have re-development potential? (is there a clause in the tenancy that allows you to break their leases for re-development is what I'm thinking).

That's a bit nuclear of an option I know but if they aren't paying, now could be a good time to look at alternatives.

Can't help you with the current situation without seeing the tenancy agreement. I'd want to see the CBRE agreement too - if they aren't collecting rent what exactly are they doing (keeping the estate clean or something)?

I realise it's not as simple as that - they could be helping you manage time spent on dealing with minutiae issues to do with the 2 units but there comes a point where you have to ask yourself - are they giving me a service I value?

blueg33 said:

It would need to have been excluded from the Act for that. IIRC the landlord also needs to demonstrate that re-development is likely, ie when I have exercised such clauses I have waited until I have a planning application running or a positive pre-app

The managing agents act for the SIPP who own the property. He might eventually be the beneficiary, but will have very limited control at present.

Anything the SIPP does will need to be in the SIPP's best interest. That will not involve sacking the managing agents and giving control to the OP. It's hard to force a tenant to pay rent at present, but there will be late payment interest to add. Of course at a certain point a tenant who is in occupation with rate liability may be a better bet than a vacant property. Time will tell how the market shakes out.

Same goes for re-development. They tend to be more riskier, and hard to get past a SIPP provider, especially if there is a tenant who should be paying rent in occupation.

[Raj28]

Don't forget about rates. No idea if your unit will qualify for any kind of relief, but if not I'd rather someone was else was liable personally in this climate unless you're confident you can re-let sharpish.

[foliedouce]

My recent experience with my SIPP provider is they will let you manage these things as long as they are kept in the loop and it qualifies under commercial arms length rules.

Just pick up the phone and talk to them about what you want to do and how they can help you facilitate the outcome.

Reduced / deferred rents are pretty standard right now so they will probably have experience of dealing with this.

We recently sublet a portion of an office to a third party company, the lease with the SIPP specifically forbid this, however we spoke to them, got a side letter and they allowed it

There’s a lot of flexibility as a landlord with property in a SIPP right now, or at least there is with our provider