Challenge

Vail Williams was appointed by Sterling Property Trust Ltd to manage five retail units along the High Street in Camberley, Surrey.

Due to unaddressed disrepair by the tenant, the building insurance had lapsed and the landlord was faced with mounting rental arrears from a neighboring tenant who vacated and left keys to the unit prior to lease expiry.

How we helped

• Liaised initially with the landlord and insurance broker to understand the disrepair and lack of compliance with the building insurance policy.
• Established communication with the tenant’s agent, liaising to ensure repairs were carried out and a PPM plan was in place.
• Put in place a new building insurance policy with Allianz for the landlord.
• Clearly and effectively communicated the policy requirements to the tenant to ensure compliance and prevent reoccurrence.
• Reviewed the rent arrears, associated timeline and the lease terms.
• Liaised with a solicitor to explore the best way to regain possession and the likelihood of recovery of rental arrears.

Result

• Ensured that the building was protected under a tailored insurance policy as recommend by Aquilla Insurance Brokers.
• Enabled our client to take peaceful possession of the property, mitigating the financial impact of the vacant property.
• Managed client expectations in relation to the recovery of rent arrears, mitigating potential further costs where possible.
• Recommended a local agent to market and let the unit which, in time, will improve the cashflow and value of the client’s building.