Side Stepping Rent Obligations With Caution

    View Author April 2017

    The usefulness of side letters has long been recognised in a landlord and tenant context, particularly in the retail sector. They allow concessions diverging from the parties’ lease obligations, such as monthly rent payments or the rebalancing of insurance obligations, to be documented with the benefit of confidentiality and a personal agreement with that tenant, whilst avoiding the risk of the concession creating a precedent for other transactions and rent reviews.