No, you cannot automatically take payment holidays on your office rent unless your landlord agrees to it or it’s written into your lease agreement. Commercial leases are binding contracts that require rent to be paid on the dates specified, and failing to pay without agreement constitutes a breach that could lead to eviction or legal action.
However, many landlords will negotiate temporary payment arrangements if you approach them early, explain your situation clearly, and demonstrate a genuine plan to catch up on arrears.
What Is a Rent Payment Holiday?
A rent payment holiday is a temporary agreement where your landlord allows you to defer or reduce rent payments for a specified period, with the understanding that you’ll either pay the missed amount later or have it waived entirely. This is not an automatic right but rather a voluntary arrangement requiring your landlord’s consent.
There are different types of arrangements. A true rent holiday means you don’t pay rent for a period but will repay it later. A rent-free period means the rent is waived completely. A rent reduction means you pay less than the full amount temporarily.
These arrangements became more common during COVID-19 when businesses faced closures and reduced income. Some landlords recognised that helping tenants through temporary difficulties was better than having empty properties.
Any agreement should be in writing and signed by both parties. Verbal agreements about rent are risky because they’re difficult to prove if disputes arise later.
Can My Landlord Force Me to Pay Rent?
Yes, your landlord can force you to pay rent because it’s a binding obligation under your lease agreement. If you fail to pay, they have several legal remedies including seizing your goods through Commercial Rent Arrears Recovery (CRAR), taking you to court, or terminating your lease through forfeiture.
CRAR allows landlords to instruct enforcement agents to enter your premises, take control of your goods, and sell them to recover unpaid rent. They must give you seven clear days’ notice, and this can only be used for rent arrears exceeding a certain threshold.
Your landlord can apply to court for a County Court Judgement (CCJ) against you, which damages your credit rating. If you’re a limited company and owe more than £750, they can serve a statutory demand followed by a winding-up petition.
The most serious remedy is forfeiture; terminating your lease and taking back possession of the property. They can change the locks and treat the lease as ended, though you have the right to apply to court for “relief from forfeiture” within six months if you pay all arrears plus costs.
How Do I Ask My Landlord for a Payment Holiday?
You ask your landlord for a payment holiday by contacting them as soon as you know you’ll struggle to pay, explaining your situation honestly, providing evidence of your financial position, and proposing a clear repayment plan. Early communication is essential because landlords are far more sympathetic when you approach them proactively rather than after you’ve missed payments.
When making your request, follow these steps:
- Be specific about what you need – Skip payments entirely for three months? Pay 50% of rent temporarily? Catch up over six months through increased payments?
- Provide context – Explain whether it’s a temporary cash flow issue or something more serious, so your landlord can assess if this is short-term
- Share financial information – Bank statements or cash flow forecasts demonstrate transparency and help them assess your situation
- Emphasise your track record – Point out you’ve always paid on time and looked after the property well. Landlords prefer keeping good tenants through temporary difficulties
- Put everything in writing – Send an email or letter clearly stating what you’re requesting, why you need help, and your proposed solution
This creates a record and shows you’re treating the matter seriously.
What Should a Rent Payment Agreement Include?
A rent payment agreement should include the specific period covered, the amount of rent being deferred or reduced, exactly when and how the arrears will be repaid, and what happens at the end of the agreed period.
The dates need to be crystal clear. If you’re requesting a three-month holiday starting 1st January, state that explicitly. If you’ll start repaying in April, specify the increased payment amount and whether it continues until all arrears are cleared.
Detail the repayment structure. Will you add £500 per month to your normal rent until arrears are cleared? Will you make a lump sum payment when you receive expected funding?
The agreement should state that it doesn’t prevent the landlord from forfeiting the lease if you breach the payment arrangement. Include a review date if your situation is uncertain—agree to reassess in three months.
Make sure both parties sign the agreement. Without this, you could be in breach of your lease even though you thought you had an arrangement. For significant arrangements, consider having a solicitor review the agreement.
What Happens If I Cannot Pay My Office Rent?
If you cannot pay your office rent and have no agreement with your landlord, you’ll be in breach of your lease and face potential eviction, legal action, or having your goods seized. The longer you leave it without communicating, the worse your position becomes.
Landlords can use CRAR to seize and sell your goods, take you to court for the debt resulting in a CCJ, or serve a statutory demand that could lead to your company being wound up. The most serious consequence is forfeiture—your landlord can re-enter the premises, change the locks, and treat the lease as terminated.
If you have a rent deposit, the landlord will draw on this to cover arrears. However, your lease will typically require you to top the deposit back up within a certain timeframe.
Former directors or guarantors who signed personal guarantees can be pursued for the debt even after your company goes into administration or liquidation.
The solution is always to communicate early, explain your circumstances, and propose a realistic payment plan before you actually default. Once you’ve missed payments without explanation, landlords become far less cooperative.
Are There Any Legal Protections for Tenants Who Cannot Pay Rent?
There are limited legal protections for commercial tenants who cannot pay rent. During the pandemic, the government prohibited commercial landlords from evicting tenants, but these protections have since ended.
The one significant protection you have is the right to apply for relief from forfeiture. If your landlord forfeits your lease for non-payment, you have six months to apply to court to have the lease restored. Courts will usually grant this if you pay all arrears plus costs.
The reality is that commercial tenancies offer far fewer protections than residential ones. The law assumes both parties are sophisticated and can negotiate their own terms, so there’s limited statutory intervention.
Contact us for expert guidance on managing office rent obligations and negotiating with landlords during financial difficulties.