The anticipated extension of the rental moratorium has arrived. For commercial tenants, the moratorium has been extended to the end of June.

This is a very double-edged provision and it was not certain that it was going to be implemented. Quite simply it simply puts off the evil day when the landlord can come around and demand an ever-growing cheque for the accumulating rent arrears.

For the hospitality industry the existence of leases and tenancies is a significant Achilles’ heel. Of course they will be expected to pay the rent but with no income coming in, they cannot and when they are permitted to open, for many not until May at the earliest, there is little chance of being able to break-even just paying the normal bills, let alone large chunks of arrears.

Still it does give a further breathing space but prudent tenants and lessees will be looking to use that time to negotiate or mediate with their landlords to endeavour to seek an extension of credit, failing which they may find they are out in the street.

Landlords, not unreasonably, would like to collect the rent which they have now not been able to do for a year.

It is a position which will need addressing.

Adrian Leopard 13-03-21

Photo Marlon Michelle Corado