The Rent Collector

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It must include a formal proposal for resolving the dispute with its reference accompanied by supporting evidence. Either party may submit one revised proposal accompanied by further supporting evidence. A party has 28 days to do so beginning with the day on which it gave its original formal proposal to the other party. The parties may agree an extension to that 28-day time limit, or the arbitrator can extend if that would be reasonable in all the circumstances. Our expectation therefore remains that tenants who are able to pay their rent debt in full should do so. However, we recognise the extreme impact closure requirements had on certain businesses, and we therefore encourage landlords and tenants to work together. Tenants who are or would be viable if not for rent debt, and who are unable to pay in full should, in the first instance, negotiate with their landlord in the expectation that the landlord will share the burden where they are able to do so and as set out within this Code. This will allow landlords to support those tenants who are in need and might otherwise be unable to continue trading.

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Whether the Applicant or the Respondent have other eligible disputes against each other concerning protected rent debt which can be consolidated, or against other parties; and This updated Commercial Rent Code of Practice sets out what the arbitration process looks like, the evidence that is considered, and the principles on which arbitration awards are made. Where there is an oral hearing the arbitrator must make an award within 14 days of the day on which the hearing concluded. The time limit may be extended by agreement of the parties or where the arbitrator considers that would be reasonable in all the circumstances. The below is a high-level summary of the relevant concepts to help landlords and tenants answer these questions. For more detail, please see section 4 of the Statutory Guidance to Arbitrators. What is a “business tenancy”? When is protected rent debt attributable to occupation during a “protected period”? The “protected period” began on 21 March 2020 and ends with the last day on which all or part of the tenant’s business carried on at or from the premises, or the premises itself (or part of the premises), was subject either to a “closure requirement” (see paragraph 44 above) or to a “specific coronavirus restriction” (note that for premises in England, the last day of the protected period cannot be later than 18 July 2021. For premises in Wales, the last day of the protected period cannot be later than 7 August 2021).

Write Off Of Bad Debts

In practice, the arbitrator will likely be reliant on the parties to state which parts of the award they think should be redacted or excluded on the basis that the information is confidential information and the reasons why that information is confidential. It is recommended that the parties provide a sufficient explanation accompanied by evidence if necessary or appropriate. Effect of an award The respondent is not required to but may submit a formal proposal within 14 days of receipt of the applicant’s proposal b. a unified approach: landlords and tenants should endeavour to help and support each other in all of their dealings with other stakeholders including governments, utility companies, banks, financial institutions, and others to achieve outcomes reflecting this code’s objectives, and to help manage the economic and social consequences of COVID-19; It is in the interests of both landlords and tenants to enable otherwise viable businesses to continue operating following the end of COVID-related measures. As such, we encourage landlords and tenants to negotiate regardless of whether their rent debts fall within scope of the Act. a. providing guidance on behaviours and negotiation aimed at assisting any business to resolve unpaid rent and to promote best practice within landlord and tenant relationships; and

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a. if the tenant is a debtor under a CVA, IVA, or ‘compromise or arrangement’ relating to any protected rent which has been proposed or applied for and is awaiting a decision, then the parties are not prevented from making a reference to arbitration. However, an arbitrator may not be appointed, and no formal proposal may be made by the respondent or no revised formal proposal by either party, whilst the decision is pending; or Together with the Commercial Rent (Coronavirus) Act 2022, this Code will continue helping landlords and tenants to move from dispute to resolution together.

Strategic Approach

To that end, the Act ringfences rent debt built up by businesses who were forced to close during the pandemic. It establishes a binding arbitration system which then decides what happens to that ringfenced debt. The volume of evidence examined should be proportionate to the scale and complexity of the tenant’s business. A small business tenant should not be expected to supply a large volume of documentation or complex financial analysis. Arbitrators are aware that smaller businesses may find it challenging to provide predictions on their future profitability, detailed financial records, or liquidity or other ratios as compared to a larger business. It is not expected that tenants incur additional significant expense in obtaining evidence that is not readily available to them. For a list of examples of the type of supporting evidence please see [section X of guidance [link to be inserted when the final guidance is published]:

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Some exceptions, e.g. takeaway food and drink allowed. Businesses allowed to open could not sell alcohol (for off-premises consumption) between 10pm-6am They will dismiss the reference where there is no “business tenancy”; no “protected rent debt” or if the parties have already reached agreement. Some premises were required to take reasonable measures to cap size of bookings and groups admitted and prevent mingling between groups. Limits in guidance on attendance levels for events (depending on type of venue) It is recommended that the letter include an offer of settlement supported by any appropriate evidence in line with the behaviours, principles and documentation set out in the Code. Initially: Areas of North West Yorkshire and the Humber, East and West Midlands, East of England, the South East, London and the South were in Tier 2.For debts that are not in scope of the binding arbitration process, landlords are able to exercise their ordinary enforcement rights in the ways they did prior to the restrictions above. Action can be taken in respect of: position of the tenant with other tenancies i.e., ability to absorb the costs within those other tenancies Closure of holiday accommodation and curfew on certain outdoor attractions, drive-in cinemas and theatres in Tier 3. If the tenant is a debtor under a CVA, IVA, or a ‘compromise or arrangement’ relating to any protected rent which has been proposed or applied for and is awaiting a decision, then the parties may refer a matter to arbitration. However, an arbitrator may not be appointed, no formal proposal may be made by the respondent, and neither party may make a revised formal proposal, whilst the decision is pending.