Rent collection rates improved significantly at the end of 2009 and beginning of 2010, bucking expectations of occupier defaults during the downturn.
According to property manager Lee Baron, rent collection rates picked up significantly in some areas toward the end of 2009 despite warnings over “occupier insolvency and rental bloodbaths”.
The agent reported that it had secured 81% of rent collections on the December 2009 quarter day and 96% three weeks later.
Overall it saw a 15% increase in quarter-day collection rates across all of its instructions between March and December 2009.
Lee Baron added that the figures were promising for property investors as December is a “notoriously challenging month for rent collection”.
It said that the majority of its instructions over 2009 came from clients that have taken advantage of opportunities driven by the economic crisis, especially where investment companies had collapsed.
The commercial portfolios have tenants ranging from the Carphone Warehouse and Boots to Poundland.
Paul Tebbutt, director and head of valuations at Lee Baron, said: “There is an urgent need for property managers to move swiftly and professionally to manage the transition process tightly and retain successful rent collection rates.
“Caution and prudence may have been over emphasised in recent months, which is not necessarily conducive to helping those best placed to make the most of investment opportunities created by the recession.
“For those taking a measured risk, innovative and skilled support teams – that can react quickly and professionally to management needs – are needed to secure investment expectations and take the sector forward.”
