When negotiating a rent relief agreement, there is a balance to be struck between providing meaningful relief to a tenant so that its business has a better chance of long term survival, while still allowing the landlord to meet its ongoing obligations, which may include mortgage payments on the property, and other costs which it may not be able to defer.

Assuming a landlord and tenant can agree in principle to a rent relief arrangement, it is very important for them to prepare a formal written agreement, as relying on verbal discussions or imprecise electronic communications frequently raises questions of enforceability, as well as leading to genuine misunderstandings. Such communications, which are generally imprecise in nature can also fail to address a number of important points that should be considered.

Click here to read David Itterman and Shaun Partridge, QC's full article.