Navigating Quarter Days: A Guide for Commercial Landlords

As a commercial landlord in England and Wales, staying ahead in the property game requires a strategic approach. One crucial aspect that demands your attention is the Quarter Day. These specific dates – typically falling on the 29th of September, 25th of December, 25th of March, and 24th of June – mark not only the end of each quarter but also the time when rents are due from tenants.

At Shergroup we have supported landlords and their advisors during the turbulent years of the pandemic where the UK Government had a never-ending stream of regulation on what could be done to protect business tenants. We have seen landlords be incredibly patient in waiting for this regulation to come to an end and to get to calmer waters in handling the impact of the pandemic on their tenant relationships. It has not been an easy time for anyone.

Now we find ourselves in a post-pandemic period, with landlords needing to get back on track with collecting in rent, managing business tenants, and ultimately taking tough decisions on whether to keep a tenant in a property

In this blog, we’ll delve into the significance of Quarter Days for commercial landlords and explore how to continue the post pandemic clean-up of their commercial property portfolios, especially when dealing with arrears and the potential need for repossession.

The Significance of Quarter Days

With the September Quarter Day on the horizon, we are highlighting the action that landlords and landowners can take using Shergroup’s Solution Platform.

Quarter Days are more than just dates on a calendar; they are pivotal moments that impact both landlords and tenants. These dates have historical origins, tracing back to when rents were collected on specific days to align with agricultural cycles and the changing seasons. Today, they continue to influence the property landscape, dictating financial flows and responsibilities within the rental market.

1. Financial Planning and Stability |

   
   At Shergroup we have supported landlords and their advisors during the turbulent years of the pandemic where the UK Government had a never-ending stream of regulation on what could be done to protect businesses.

Now we find ourselves in a post-pandemic period, with landlords needing to get back on track with collecting in rent, managing business tenants, and ultimately taking tough decisions on whether to keep a tenant in a property or bring the lease to close.

For landlords, Quarter Days serve as crucial checkpoints for financial planning and stability. These dates mark the inflow of rental income, allowing landlords to manage their own obligations, such as mortgage payments, property maintenance, and tax liabilities. Proper financial planning around Quarter Days can help landlords avoid cashflow issues and maintain the health of their property portfolios.

2. Tenant Expectations |

   
   Quarter Days also play a significant role in tenant-landlord relationships. Tenants anticipate these dates as the due dates for their rent payments. It’s an opportunity for landlords to reinforce the importance of timely payments and ensure a clear understanding of rental terms. By setting clear expectations and communicating effectively, landlords can foster positive relationships with tenants.

Preparing for Quarter Days: Tackling Arrears and Repossession

While Quarter Days can be smooth sailing, they can also present challenges, particularly if tenants fall into arrears or if the situation necessitates property repossession. Here’s how landlords can navigate these potential hurdles:

1. Open Lines of Communication |

   
   Effective communication is key. If tenants are facing financial difficulties, encourage open dialogue. Understand their circumstances and work together to find viable solutions. It’s in both parties’ interests to maintain a positive rental relationship.

2. Arrears Management |

   
   In cases of arrears, act promptly. Initiate discussions with tenants and explore repayment plans that are feasible for both parties. Consider the tenant’s ability to catch up and propose a reasonable timeline for settling the outstanding amounts.

3. Legal Action and Repossession |

   
   If arrears persist and negotiations prove unsuccessful, landlords may need to take legal action. This could involve obtaining a possession order through the court system. It’s essential to understand the legal process, rights, and responsibilities. Seeking professional advice, such as that from Shergroup’s High Court Enforcement Professionals, can provide guidance on lawful procedures.

4. Leveraging Shergroup’s Solutions |

   
   Navigating Quarter Days and the challenges they bring is made easier with Shergroup’s Solutions platform. This comprehensive platform offers cashflow, property, security, and legal solutions tailored for commercial landlords and landowners, along with their advisors. From optimizing cashflow management to ensuring property security and legal compliance, Shergroup’s expertise can provide the support needed during critical times like Quarter Days.

Summing Up |

Quarter Days are more than just dates – they are opportunities for commercial landlords to maintain financial stability, nurture tenant relationships, and address potential challenges head-on. By understanding the significance of Quarter Days and adopting a proactive approach to arrears and repossession, landlords can navigate these periods with confidence and ensure the success of their property ventures.
Are you prepared for the upcoming Quarter Day? Share your thoughts and strategies in the comments below. And remember, professional guidance from Shergroup’s Solutions platform is always available to support you in your landlord journey.

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