According to the latest figures from Remit Consulting, the collection of commercial rents, 21-days after the September Quarter Day due date, has reached the highest level seen during the pandemic.
Property Funds World reports that Remit’s REMark survey revealed that an average of 81.9 per cent of commercial rents owed was paid within a week of the due date. The figures for rent and service charge collections have been verified by the UK’s major property management agents.
The REMark survey has been produced for over ten years, and studies have shown that around 80 per cent of rents were collected within a week of the due date consistently before the pandemic.
Steph Yates, a senior consultant with Remit, said she felt it was a positive sign that the level of rent collection had been reached by the 21-day mark, especially when only 79.1 per cent of rents were collected over the full 90-days of the September Quarter in 2020.
The most reliable businesses were those in offices, with 90.4 per cent of office rents having been paid, while the industry sector was next with 83.7 per cent, the retail with 75.4.
Rent collections for leisure businesses stood at 74 per cent, which will be welcome news for landlords who saw collection rates of only 41.4 per cent at the same point in 2020.
Remit Consulting has been working in conjunction with the British Property Federation (BPF), the RICS, Revo, the Property Advisors Forum, and members of the Property Industry Alliance (PIA), to analyse the collection of rent and service charge payments by the country’s largest property management firms since the start of the pandemic.
The research covers around 125,000 leases on 31,500 prime commercial property investment properties across the country.
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