not paying rent with £10000 grant

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    not paying rent with £10000 grant

    Hi I am a landlord I have a tenant who rents a small shop from me (computer repairs etc)he is closed on lockdown.He has recieved the £10000 small business grant but is now saying he doesnt want to pay rent or might pay half I told him the grant was to pay his business outgoings ie rent and to use that ,he said he is using that to pay his personal outgoings at home and is threatening to leave .Surely this is wrong can he do this ?I must add his rent is only £8000 per year but I fear my other tenants along the same road might get a similar idea.any advice welcome ps he is on a monthly ongoing agreement

    #2
    Call his bluff and ask when he's leaving IIWY. I bet he soon backs down.

    BTW, would he still be entitled to the £10k if he shuts up shop?

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      #3
      You can't evict him easily but he will remain liable for rent. So you can sue him later. Ask whether he might want to terminate his tenancy voluntarily to avoid accumulating debt.

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        #4
        I dont particularly want an empty shop I was more interested on your thoughts on the grant money been used for personal use rather than rent Also can shops receive the grant then just close and keep the money ??? should it not be paid back ??

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          #5
          Oh, well either take the risk of an empty shop, or keep it occupied for no rent. I know what I'd prefer.

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            #6
            Originally posted by JK0 View Post
            Oh, well either take the risk of an empty shop, or keep it occupied for no rent. I know what I'd prefer.
            Occupied with no rent beats empty and paying business rates. Especially when tenants are rare as hen's teeth.....

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              #7
              Originally posted by Section20z View Post

              Occupied with no rent beats empty and paying business rates. Especially when tenants are rare as hen's teeth.....
              What business rates?

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                #8
                yes there is nil rates on this property I must add it was fully refurbished totally inc shop front 2 years ago ..

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                  #9
                  Originally posted by k brown View Post
                  yes there is nil rates on this property I must add it was fully refurbished totally inc shop front 2 years ago ..
                  I doubt you have nil rateable value. There is an exemption on payment for some low levels but it only applies to occupants who use it for their sole business.

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                    #10
                    As I understand, he can do what he likes with the grant. It would be treated as revenue for the business and is taxable.

                    Responsibility for the rent is a separate issue. If he doesn't or won't pay and provided you don't agree to a concession then, although there is not much you can do for the time being to enforce payment, he remains liable.

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                      #11
                      He remains liable? Unless it's a LTD company. In which case he has no liability personally.

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                        #12
                        Tenant is renting retail shop I think he will try to return keys to me ( posting through my letterbox )and leave shop as is and stop paying rent , he only needs to give me one months notice. I don't want to accept keys unless he puts it back to as was before he moved in as it was fully refurbished and ready to let .QUESTION IS (hopefully from someone with legal knowledge) can I refuse keys and simply post them back to him ? and would he still be liable for rent till he moves all his counters /racking / desks out (would this still be thought as of still been in occupation as hes storing his items there ?) ps he has already recieved the £10000 grant
                        thanks in advance for any advice

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                          #13
                          Update tenant has now given notice and returned shop to near the original condition he as kept his 10k grant money he is looking to open another shop later in the year with the intention of getting a cheap rent sub £100 .I have already had interest in empty shop prior to putting a to let board up .

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                            #14
                            If he's no longer at the premises and has terminated his tenancy, then he has changed the situation in which he was eligible for the £10k grant.

                            I've also received such a grant, in my case in respect of a holiday let property that is not lettable during lockdown. When I was applying it said I had to let the council know if my circumstances changed, as my eligibility for the grant might therefore change (and I'd have to repay it).

                            Why not inform your council what has happened, that h's taken the grant and given up the tenancy. They might go after him to get the £10k back!:

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                              #15
                              PS - just a thought - but might YOU now be eligible for the grant, now you have vacant premises, and no likelihood of a new tenant for the duration?? (I don't know what the scheme is re commercial property cf holiday lets)

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