Value of future commercial rental debt

I have to deal with the issue of commercial rent debt after the eviction moratorium for tenants. Is there a way of assessing what the commercial rent debt should be?

On paper, the commercial tenant contracted to pay $D per month for n more years. On paper the tenant is liable for the dollar amount of rent

D x n x 12

What amount can be pursued realistically for recovery? I have heard suggestion of 20%. Is there any tax implication for the loss of rent?

 

What steps have you taken to re-lease the property & minimise your loss?

The tenant would be liable up to the time that you manage to re-let the property and the cost would increase proportionally for the costs of getting the new tenant (marketing, lease preparation/registration, agency commission) & the bond used against outstanding rent.

 

First step is to evaluate your chances of recovering any money from the tenant prior to spending any funds on legals...

 

To facilitate productivity of my property, I had it touched up, painted and appointed a property manager to advertise it for lease.

As I have mentioned, the property was leased by a commercial tenant who had exclusive use of it for a number of years at an indexable rent. The commercial tenant was also the property manager and there was no bond taken. The commercial tenant operates the property as part of a hotel.

I know that in the case of normal residential tenancy, the tenant occupies the apartment, pays rent and a bond. However, in this case the commercial tenant signed a contract to pay indexable rent for a number of years, independent of occupancy volume in exchange of exclusive right to operate a business.

 

The commercial tenant has ongoing income due to multi year cleaning/security contract with the body corporate for the building and if I have Tribunal ruling to debt owing, I could pass it to a debt collector?

If the amount is large, I could apply to garnishee from the body corporate contract?

 

First, focus on getting the premises let out again.

Google Phoenixing

You believe they have contracts, not to say the company you are chasing hasn't sold tbe contracts to a new company for $1 (but it happens).

Let's say you get a tribunal ruling, they don't pay, then it becomes a civil matter & court costs and when you win they don't pay, so you sell it to a debt collecting company for a %.
Put a figure on it first, then decide if it is worth the stress for a portion of...
Doubt you could garnish the contract.