Create a Rent Deferral Agreement
Whilst coronavirus has spurred the Government to prohibit tenants from being evicted from their premises, many renters who are protected from eviction mistakenly believe they do not owe rent. Tenants who don’t pay their rent on time are in breach of their existing contracts which means they can be evicted as soon as restrictions end. Tenants should continue to pay rent if they can. If not, they need to immediately contact their landlord about a possible rent-deferral agreement. Landlords rely on payments to take care of mortgage payments, maintenance, utilities taxes, etc.
To protect both Landlords and Tenants we have developed a low cost self-service portal to create a general purpose Rent Deferral Agreement. This is an arrangement between landlord and tenant to defer usual payments for an agreed time.
The cost to use this service is £95 + VAT
This standard document is for use where a landlord and a tenant agree a rent deferment relating to their lease. It provides a standard framework that can be used by the parties to document what they have agreed. It could serve as a useful starting point when drafting such an agreement.
In order to ensure that a Rent Deferral Agreement achieves its purpose, it is necessary for the agreement to be tailored to the particular circumstances of the matter in question.
NOTE: This document should NOT be used where a rent holiday or rent abatement has been agreed. This document is for use to record a rent deferment agreement only, allowing the tenant to defer paying certain rent obligations under a lease for a certain period. The tenant is then required to pay the deferred rent to the landlord once the deferment period is over. In the event that the tenant defaults on payment when due, the deferred rent shall be treated as rent arrears and will be enforceable.
The rent deferment agreement contains standard clauses and provisions only.
It contains options for the period of the deferred rent and the percentage of the rent to be deferred.
It can be used by a landlord or a tenant to record the terms of the rent deferment agreed due to the Covid 19 pandemic.
The rent deferment agreement assumes that the rent deferment relates to rent only. Therefore, it does not include provisions for any other payments, which may be due under the lease, such as insurance rent or service charges to be deferred.
The rent deferment agreement does not contain any interest provisions.
The rent deferment agreement does not contain any cost provisions.
The rent deferment agreement does not contain any termination provisions.
It does contain an optional provision to include a Guarantor. Please note that it is essential for the any Guarantor to provide their consent to be subject to ant rent deferment agreement.
The Rent Deferral Letter will be provided in a PDF format.