57%: That’s How Much Rent Was Paid To UK Landlords This Month
UK landlords collected just 57% of the rent they were due at the end of March, according to an in-depth survey. Given the extent of the impact the coronavirus has had on the economy, it is hard to know whether that is a good result or not.
Remit Consulting surveyed its property management clients about rent collection from their properties, and collected a data set that covered 78,700 leases on more than 18,350 commercial and residential properties across the UK.
A week after the 25 March quarter day, just 57% of the rent owed had been collected, Remit found. That compares to 90% for the same period in 2019.
The amount of service charge collected was even lower, just 48%, compared to 80% the year before.
“While property managers are working hard to mitigate the impact of the pandemic, and further research is needed in coming days to get a clear picture on how agreed rent and service charge ‘holidays’ are impacting collection rates, these figures are likely to make uncomfortable reading for landlords, asset managers and investors,” Remit Consulting Senior Consultant Steph Yates said.
Within that overall figure there were some results that were expected, but some that were surprising.
Retail fared badly, with just 47% of rent collected within a week of the quarter day, but residential also saw just 47% of rent collected. Remit said the three-month ban on residential evictions for nonpayment of rent meant that many tenants had not paid rent without providing an explanation.
When it comes to listed companies providing data on rent collection, those with a large exposure to industrial have fared best, but Remit’s data showed that offices have been the most resilient real estate sector. A total of 71% of office tenants paid their rent within seven days of the quarter day, compared to 62% of industrial tenants.