Commercial property investors in Northern Ireland and the rest of the UK have been advised to be flexible when it comes to taking rent from businesses in light of the economic downturn.

According to leading economic research consultancy Capital Economics, the tradition of paying rent in large, quarterly instalments is hurting businesses struggling through the financial crisis.

The organisation's property economist Ed Stansfield has said such arrangements are not ideal in the current climate and could lead to losses to both parties if the occupier goes under.

He said: "There is no sense for landlords to end up with empty units, and [for] businesses that are facing cash flow problems going under.

Commercial property owners should adopt "a more flexible arrangement on rent payments", he said, which may help struggling retailers ride out the storm.

Solicitors can help people wishing to pursue such arrangements to develop contracts governing the payments.

The British Retail Consortium also recently called on commercial property owners to be flexible with their tenants.

According to Drew Nesbitt, a member of the Commercial Property department at Wilson Nesbitt Solicitors, "the current economic climate has required Landlords to revisit their existing rental arrangement.

"The Landlords that work with lenders and tenants to ensure they maximise rental income during the downturn will be better positioned to take advantage of the up-turn in the market when it arises," he said.

"Landlords should take legal advice prior to altering any terms to protect future rental value."
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