Many Ts of retail premises are asking to pay their rent monthly (rather than quarterly).

An L who is considering such an arrangement must act very carefully in all communications to ensure that there is no informal binding agreement. In particular, if monthly payments (or part payments) are accepted then there is a real risk for L that other remedies will be lost. In addition, check whether there is a guarantee and whether its terms allow L to modify T’s rent obligations (and, if so, on what terms). The important point here is not to allow an agreement between L and T to constitute a variation of the terms of the lease without the guarantor being a party. The law on variations without guarantor involvement is very strict, and guarantors will be released from all liability unless they are a party to the variation. Likewise, consider the liability of former Ts (ie will a variation mean that they are no longer liable)? 



If L is willing to agree such an arrangement, then it is important to detail the terms. For instance, is this a temporary or permanent arrangement; what will be the effect on the wording of any rent review clauses; what will L’s rights be if any payments are missed or post-dated cheques dishonoured?