14:45 PM, 23rd October 2017, About 5 years ago 3
I complete on my first commercial property purchase tomorrow which has 2 shops let out on leases. One is fine with no arrears, but equally no security deposit held. However the second has 3 months security deposit which has being assigned to myself along with a raft of arrears which has also being assigned to myself (circa £8,750.00).
Very fortunately for me, whilst the arrears have been assigned to myself, we have managed to negotiate that I keep all the monies should I manage to collect them. I believe they have agreed this so that they can close the estate of the deceased owner as opposed to them believing they have no chance in collecting. As a result, I have two questions please:
1. Should I hold/secure their deposit with a third party? I know that I am duty bound to pass on any interest accrued. As this is a security deposit, I suppose I can keep that money if they do default, but when should I declare that to them?
2. Any recommendations in how I should go about recovering the debt? At the moment, I have a reasonable relationship with the tenant so am considering offering them terms to catch up, but any other suggestions would be welcome.
Thanks for your help
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