Tenant/landlord issues

This overview is a guide to the Restructuring & Insolvency content within the Tenant/landlord issues subtopic, with links to the available materials.

Landlords are often left in a perilous position in the insolvency of a tenant. They may have rent owing, yet they may be restricted from initiating steps against a tenant subject to an insolvency process due to statutory limitations, even though landlords have a proprietary interest.

The key factor for a landlord when a tenant is insolvent, or is verging on an insolvency event, is to ensure that outstanding rent arrears are paid and future rents are secured as best as possible. Unless there is adequate financial protection in place (such as a rent deposit, or a guarantee with an entity with sufficient covenant strength), it is very difficult for landlords to protect their position. Further, and balanced against this, landlords also need to take into account the long-term plan for the tenant, as pushing hard for rent in the short term could lead to premises becoming unoccupied and empty rates liabilities arising.

On the other hand, tenants may also find themselves in a position where