Receivership: Everything You Need to Know

With remote working on the rise and social distancing measures still in place, the state of businesses or properties has changed significantly. For many retailers or properties that have accrued a large amount of debt, beginning the receivership process may be the next step. Unlike liquidation that often spells the end of business altogether, receivership can be a move in the right direction for recovering and preserving business assets of all kinds.

Understanding receivership is an important first step in initiating the process and finding a trustworthy receiver. While the process appears complicated at first glance, closer inspection reveals a relatively straightforward system with a definite goal in mind. Let’s take a closer look at what receivership entails.

Whether it results from a court order or the property owner initiates the process, receivership can be a confusing ordeal. Find more info on the process here. #TarantinoProperties Click To Tweet

The Receivership Process

The process of receivership begins when a court appoints a receiver agent to take over managing a property and help lenders recover losses, or when the company decides to hire a receiver themselves for the same reasons. In either case, the receiver enters as a neutral third party. They assume legal ownership of the property in all but name, taking over all responsibilities and money management. The receiver then continues to keep the company functioning while gradually paying back the company’s creditors to reduce the debt.

The End Goal

Ultimately, receivership is about satisfying both the borrower and the lender in a professional relationship. For lenders, it’s a helpful way to make sure the business’s income is being used for incoming bills. Having a receiver in place can help keep business owners accountable, reducing the chances of rent skimming or waste. 

  • Rent Skimming – When business owners use any income from rent payment toward something other than paying the mortgage or maintaining the property.
  • Waste – When business owners neglect the needs of their property or building, which ultimately affects the real estate value. 

With a receiver acting on behalf of the court’s order, there is authority in place to protect company assets. At the end of the day, the goal is to help a business recover. In the same way, creditors are given the opportunity to recoup more of their funds, allowing all parties to maximize profitability.

Pro Tip: Finding the right administrative receiver for a property doesn’t have to be difficult. If a business is facing foreclosure, it’s important to get in touch with a qualified attorney to make the right steps.

Securing Your Assets

Giving up control of your property may seem daunting. However, handing the reins to a trustworthy receiver is the best decision you could make in dire financial straits. Let us come alongside you and help you improve your situation.

Tarantino Properties offers professional receivership services to any business that needs it, including multifamily, senior living, commercial, and student housing properties. Get in touch with us to get the receivership process started.

Receivership vs Liquidation: Is There a Difference?

Has your property entered the receivership stage? This transition can be difficult and worrying. But don’t confuse your receivership process with liquidation, a much more serious affair that spells the end of your business.

Receivership and liquidation are two very separate processes. Even if certain aspects are comparable, the two procedures involve different end goals and overall different strategies. Let’s take a closer look at both to highlight the differences.

Has your property gone into receivership? Don’t worry--it’s not liquidation! Learn the critical differences between the two here. #TarantinoProperties


When a company enters receivership, that’s a sign that the business has a lot of debt and is struggling to repay its creditors. However, the process of receivership is designed to eventually guide the company back to former glory if possible. A receiver is appointed by the company’s creditors to manage the company’s assets, sell certain portions to repay all debts, and keep the business running as much as possible in the meantime. For properties, this typically means the receiver handles tasks like collecting rent and communicating with tenants. The owner still maintains a limited role in the company, but the creditor- or court-appointed receiver handles the majority of the work. If and when the company’s debts are finally repaid, the receiver leaves and the owner retakes control of the business.

Pro Tip: When a property enters receivership, your duties as a manager will change. Discuss your new, limited responsibilities with your receiver agent for more details.


Liquidation is a horse of a different color. While receivership is designed to get a business back on its feet, liquidation is designed to dissolve a business that has no chance of recovery. A liquidator is always appointed by a court to divide up and sell every asset of the company to repay its creditors as much as possible. Every employee, including the owner, forfeits their position in the business. When the entire business has been dissolved, the company ceases to exist.

What They Have in Common

While the end goals of the two processes differ significantly, several aspects are strikingly similar. Both a liquidator and a receiver act on behalf of creditors and prioritize repaying them, especially creditors that appointed them or initiated the process, above virtually all else They will also file periodic reports on their progress. The owner of the company is always required to step aside, in whole or in part, as another party takes over.

Most importantly, both receivership and liquidation show that a company is heavily in debt. The process of receivership simply means you have a chance of recovery, while liquidation is a last resort.

Keeping Your Property Afloat

In the vast majority of cases, receivership is designed to get your property back on its feet. You only have to worry about liquidation in particularly bad circumstances. Do your best to work with the receiver as much as you can to help things get back to normal.

Connect with us for more information on our receivership services.