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Quarterly rents 'cannot be justified in the modern business world'

Published On 26 March 2007 at 12:20:43

An organisation which represents the interests of the UK's small and medium-sized enterprises (SMEs) has called on commercial landlords to scrap the practice of charging businesses quarterly rent.

The British Retail Consortium (BRC) has advised SMEs to boycott new leases that demand quarterly rent in advance, describing them as "an antiquated practice which cannot be justified in the modern business world".

March 25th is traditionally seen as the toughest rents quarter day for SMEs, as lean spending after the Christmas period means these organisations can struggle to find the money upfront to pay rent.

According to the group, having to pay three months rent in advance increases the costs of retail SMEs by £145 million every year.

"There has been a real mood change among many commercial landlords. They know that ultimately this long overdue reform will come," said BRC head of property Paul Browne.

Mr Browne concluded by noting that smaller landlords were often "willing to be flexible", but that it was up to SMEs to try to force a change in attitude.

"Now is the time for retailers to be forceful and call time on this ancient and costly practice."

 

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