Settling the Back Rent

Landlords and their property managers should be cautious in their communications with tenants that are in default for non-payment of rent.  While it may be prudent to work out a payment plan that is acceptable to the landlord, the landlord must be careful to avoid creating a new agreement with the tenant that might supersede the payment terms in the lease.  This is especially true if the landlord is going to forgive or delay a portion of the back rent as part of the new agreement. The landlord should expressly reserve, in writing, all of its rights under the lease should the tenant default on the new payment plan, including the right to commence a legal action to recover all of the back rent that is owed under the lease.  The landlord’s failure to do so can result in enforcement problems should the tenant fail to honor the payment plan.