Retail Tenants Look to Pay Monthly

A recent report in Property Week claims that 2 of the most successful out of town retailers, Hobbycraft and the furniture chain DFS have initiated talks with their landlords to pay rents monthly.

Traditionally tenants sign up on leases where rents are paid 3 months in advance. For ease of cash flow and to more easily allocate money to refit and refurbish stores, tenants are seeking this monthly basis for payment.

Mellersh & Harding manage many retail properties for clients and indeed a number of tenants have requested a monthly payment basis. David Mundy who oversees one of the firm’s in-house client’s portfolios commented “we have recently agreed terms to let a substantial retail unit in York to a national retailer where we have agreed for the rent to be paid monthly in advance”. In instances where the tenants are unproven, monthly payments may benefit the landlord as they will be aware of any financial problems sooner rather than later. Back