Letter permitting tenant to pay rent monthly

by Practical Law Property

A standard document for use by a landlord to temporarily permit a tenant to pay rent monthly instead of quarterly. This side letter is intended to operate as a waiver of the quarterly rent payment obligation in a commercial lease for a defined period, rather than a permanent variation of the lease terms. This standard document sets out the conditions for the monthly payment arrangement, including the duration of the waiver period and the method of payment. It also addresses the potential for early termination of the rent concession, outlining trigger events such as a breach of the lease, assignment by the tenant, or transfer of the landlord's reversion. Furthermore, this standard document details the consequences of termination, including the tenant's obligation to pay any rent shortfall. It explores key legal implications, such as the effect on the landlord's right to forfeit and the liability of guarantors and former tenants under the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995).