Commercial Rental Arrears Recovery for a Property Management Firm
The Challenge
Commercial rental arrears can escalate quickly. When overdue balances accumulate:
- Property owners lose working capital
- Maintenance and operational expenses become strained
- Landlord–tenant relationships may deteriorate
- Legal disputes can become expensive and slow
In this case, tenants varied widely:
- Some were still operational but avoiding communication
- Some were paying small irregular amounts
- A few had ceased trading but had not vacated premises
Recoveries needed to be handled professionally and strategically, without prompting unnecessary evictions or damaging long-standing business relationships.
TenUp’s Recovery Strategy
1. Portfolio Assessment & Debtor Categorization
TenUp segmented tenants into groups based on:
- Ability to pay
- Current business activity
- History of responsiveness
- Lease status and terms
This allowed us to prioritize cases with the highest recovery probability, while planning tailored approaches for more complex situations.
2. Structured Outreach & Negotiation
Consistent and respectful communication was established with business owners, finance officers, or authorized representatives.
Discussions were centered on:
- Acknowledgement of outstanding balance
- Establishment of realistic repayment plans
- Agreement on terms to avoid legal escalation
Communication was persistent but professional — firm, not forceful.
3. Repayment Plan Design
For viable businesses, TenUp negotiated phased settlement arrangements aligned to projected revenue.
For struggling businesses, options included:
- Temporary reduced-rate plans
- Turnover-based repayments
- Lease renegotiation with financial guardrails
4. Legal Positioning Without Immediate Escalation
TenUp clarified legal rights and consequences without threatening language. This maintained cooperation while ensuring clarity of obligations.
Results
Within 60 days, TenUp achieved:
Metric | Result |
|---|---|
Total Portfolio Recovered | Over 60% repayment secured |
Payment Plan Adoption | 75% of active tenants entered structured agreements |
Tenant Retention Rate | 93% maintained occupancy (avoidance of turnover costs) |
Legal Action Required | Less than 5% of cases escalated |
Client Impact
The property firm was able to:
- Restore stable monthly inflows and improved cash predictability
- Avoid costly evictions and downtime in occupancy
- Preserve long-standing tenant relationships and goodwill
- Implement a formal arrears management policy moving forward
The firm has since retained TenUp for ongoing arrears monitoring and early-stage intervention, preventing future accumulation.
Conclusion
Commercial property arrears recovery requires both financial firmness and relationship sensitivity. TenUp’s approach achieved high recovery rates while keeping tenants in place, protecting long-term occupancy and revenue stability.
“We recover what others cannot, while preserving the relationships that matter.”
