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    Rent arrears

Considering Alterations to Rent Liabilities

In a difficult economic climate, landlords are sometimes willing to take steps to accommodate their tenants’ financial difficulties, e.g. allowing the payment of quarterly rents on a monthly basis, rent concessions etc.

Such arrangements should always be documented and signed by both parties, as well as the guarantor. There are a number of issues to consider when documenting such arrangements, including:

  • whether the landlord wishes to charge interest;
  • in what circumstances the arrangement may be terminated;
  • the implications of a tenant’s subsequent insolvency;
  • (in the case of a rent concession) whether there will be any right to resurrect the entitlement to this missing rent;
  • the implications of the arrangement on any rent review – for this or other nearby premises; and
  • the risk of releasing any guarantor.
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