Neil Pota, associate, Bircham Dyson Bell LLP is warning landlords who rent property to retailers to include within their rental contracts the necessity for the tenant to disclose sales figures.
"It sounds basic, but how many landlords have no sight of the retailers sales figures, and therefore have no foresight into whether or not their tenant sales performance is strong, or if weak, whether the tenant may default on the rent payment due to poor sales," explains Neil Pota.
"With one of the worst Christmas' on record predicted for retailers, times are very hard, and retailers get hit with many costs at this time of year.
"Traditionally the last quarter day of the year is Christmas Day - when rent is due - which means that the retailer can't count on the Boxing Day and New Year sales figures before paying rent.
"Retailers are bringing their sales period forward to before Christmas so that the heavy costs incurred can be partially offset this year. And with online sales as strong as ever, those retailers with high street premises are worried that shoppers are merely browsing and then going home to buy online."
"Its going to be one of the toughest Christmas' ever for retailers, and the knock on effect is that it will also affect landlords. I'd urge landlords to work together with their tenants and come to mutual arrangements to get through the festive period. And where possible, to make provision in rental contracts to disclose sales figures so they can foresee any difficulties before they happen."
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