Rent Concession Side Letter for Commercial Landlord
This Rent Concession Side Letter for Commercial Landlord records the Landlord’s agreement that the rent payment provisions of a Lease will be amended for a specified period of time. The Letter is designed to be used for a rent concession lasting up to six months and will typically be used where the Tenant is experiencing hardship and is temporarily unable to pay the full rent.
The Side Letter gives details of the concession the Landlord has agreed to make. Various scenarios are catered for, including:
· Rent being paid monthly instead of quarterly;
· Rent being reduced;
· Rent being suspended (a rent-free period); or
· Rent being suspended but collected at a later date (a moratorium).
The Letter states that the concession will cease to have effect if the Tenant becomes insolvent or materially breaches the terms of the Lease.
The Letter should be countersigned by the Tenant and any Guarantor to confirm their acceptance of its terms. The Landlord should also check whether the consent of a superior landlord or lender is required to the grant of the concession.
If the Landlord and Tenant wish to make a permanent change to a provision of the Lease they should use a Deed of Variation .
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Rent Concession Side Letter for Commercial Landlord is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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