Company debt advice for landlords and property management businesses

Discover ways to safeguard your landlord or property management business in the face of a tough market. 

Gain knowledge about formal insolvency procedures like Company Voluntary Arrangement (CVA), Company Administration, or Creditors’ Voluntary Liquidation (CVL) to either rescue or wind up your business.

An Ultimate Guide to Rescue, Recovery, and Closure Options for Landlords

Both commercial and residential landlords are encountering difficulties due to shifting consumer preferences and constantly evolving regulations. As more workplaces permit employees to work remotely, the demand for office space in premium city centre locations has diminished.

Conversely, residential landlords are facing challenges with increasingly stringent regulations, which make conducting business more challenging.

Winding up your landlord or property management company through liquidation processes

If financial problems arising from non-paying tenants or vacant properties have pushed your property business beyond recovery, you might need to contemplate liquidation. This can be achieved via a director-initiated procedure referred to as Creditors’ Voluntary Liquidation (CVL).

All company assets will be sold to benefit creditors, with any remaining debt forgiven as part of the process. Nevertheless, due to the assets typically involved when a landlord or property company faces financial distress, liquidation may not be a viable option considered.

By seeking guidance from a licensed insolvency practitioner, you can gain a clear understanding of your situation and explore available options to not only navigate the challenges but also emerge in a stable and resilient position.

How can you rescue your property management company?

A restructuring process could enhance the efficiency and cost-effectiveness of your landlord or property business. This might involve streamlining or simplifying operations to shed non-profitable channels, thereby redirecting essential funds and resources to more lucrative areas of the company. 

Depending on your property portfolio’s financing structure, you might consider exploring the option of releasing funds tied up in assets through asset-based lending. This could promptly enhance cash flow, enabling you to meet expenses during these challenging times.

Alternatively, you might consider placing the company in a formal insolvency process such as a Company Voluntary Arrangement (CVA) if you intend to engage in formal negotiations with creditors. Alternatively, the administration could provide the breathing space needed to devise a viable plan moving forward.

Seek Professional Assistance from Vanguard Insolvency 

If you operate your landlord business through a limited company, Vanguard Insolvency can offer expert assistance and advice. Our licensed insolvency practitioners are available to help you understand your options.