tenant breaking shop lease

[ginetta]

I have a shop tenant who signed a 15 year lease with 5 year break clauses in 2010 .A relative of his went personal guarantor .
In June 2012 tenant returned shop keys to me stating business failed even after his guarantor had put money in to keep it afloat .
Rent paid to date he vacated . He says neither he or guarantor has any money left .
I have relet the premises in September but had to take a lower rent. I have also incurred extra costs in doing so.

Am considering taking legal action to recover the lost rent and costs which amount to about 20 grand. What does anybody think of my chances. Should mention have seen business profit and loss account and business was bad.

 

[SPUDZ]

times are tough...give the guy a break.Let it go and be glad to have it rented again. One day maybe your act of kindness will be returned, in one form or another. He broke the lease...has little or no money...no business...save yourself a whole load of trouble and write it off as a bad debt if you can afford to.

 

[oldnick]

On the one hand SPUDZ is absolutely right. I'm assuming the guy didn't set out to cheat you and his relative has already lost money. Small retailers everywhere are closing and those surviving are barely making a living. the proeprty owners chasing them for money seems callous.

But...

Sadly for the relative ,is she/he did sign a legally binding guarantee (Ginetta should check this with a lawyer)-then the court may decide in Ginetta's favour. Actually getting the money may prove more difficult than getting the judgement; it could take ages. But if the guarantor is rich and Ginetta has lost out, then it may be silly not to pursue this, hard as it may seem.

My advice as a former tenant of several shops for decades as well as being the landlord of one, is to see a lawyer and, if you have a strong case , agree to settle for a reduced sum -say half -in order to avoid the whole court thing.