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Tenants cough up rents in record time

Commercial property tenants are paying rents in record time, according to latest statistics from Colliers International.

The firm’s Birmingham office collected 99 per cent of its £4million plus quarterly (July-September) rent roll within five days. That’s down from eight days for the same period last year.

According to Martyn Edwards, a director and head of investment property management (IPM) Birmingham, tenants are paying up, despite the economic gloom.

He said: “Notwithstanding the malaise on the High Street and the economic pressures on businesses in general, we are finding that occupiers are not using the recession as an excuse to delay their rent payments. It seems like no-one wants to get into arrears and spiral into debt, so they are paying up on time.”

Mr Edwards manages a team of six in Birmingham, and is responsible for an annual rent roll of more than £16m, across 130 properties around the Midlands.  Nationally, Colliers International’s IPM team has collected 99 per cent of rents within 14 days of quarter day, for 15 consecutive quarters, based on an annual rent roll of £250m and more than 3,300 tenants. This quarter, 99 per cent was collected in just five days.

He said: “Although we act for landlords we find that maintaining a dialogue with tenants is fundamental, particularly in these testing times. Whist is it a key objective for landlords to have good credit control rent deposited in their own bank accounts as quickly as possible, they can be accommodating if a tenant is in trouble, perhaps agreeing a payment plan to help out with cashflow. Sending in the bailiffs or ejecting a tenant is in no-one’s interest.”