Research by Remit Consulting into the collection of rents by leading property managers at the start of the second quarter of the year has revealed that the collection of rent, on the due date, was down by as much as 50% compared to the same period in 2019.
Since the beginning of April Remit has surveyed six of the UK’s largest property management firms responsible for nearly 78,700 separate leases on over 18,350 commercial properties across the UK. In 2019 the overall average figure for the collection of rents on the due date was 79%. In April 2020 this figure is 48%. And service charge collection rates are even lower, falling from 73% in 2019 to 35% in 2020.
Remit Consulting senior consultant Steph Yates said: “While property managers are working hard to mitigate the impact of the pandemic, these figures are likely to make uncomfortable reading for landlords, asset managers and investors.”
Specifically in the retail sector, the survey found 41% of rent was collected on the due date rising to 48% one week later. Service charge collection fared less well in the retail sector, however, with only 28% paid on the due date rising to 38% seven days later.
