There will come a time when a current tenant may fall seriously behind or owe you for something due under the lease, such as an accumulated water bill, a bounced security deposit check or some damages they did to the premises. A promissory note is simply an agreement when one party agrees to pay another party a particular past due sum or currently due sum on a particular date or dates.
Some recommend that a promissory note should be used only with a past or departing tenant owes you money and desires to pay you on a certain date or dates according to the payment arrangement spelled out on the promissory note. These people also recommend never using such an arrangement with a current tenant. The tenant may vacate owing you past due rent, late charges, unpaid utility bills or anything owed under the terms of the lease This Note will memorialize the debt in writing and can be used later if the past tenant defaults, and you wish to pursue the debt.
These same people recommend that a promissory note should not be used with a current tenant who owes you money. They point out that unless the promissory note clearly states that the amount is rent due under the terms of the lease, the landlord may have unwittingly converted past due rent into simply a monetary obligation for which he will not be able to evict the tenant using a Statutory Notice Period. Also suppose the tenant fails to make a payment, what is owed: the full balance all at once; or only that missed payment? This matter may be clarified by an acceleration clause in both the lease and the Note.
Description: An Arizona Promissory Note for Past Due Rent is a legally binding document used when a tenant is unable to pay their rent on time and as a result, owes past due rent to the landlord. This promissory note serves as an agreement between the tenant and the landlord to establish a repayment plan for the outstanding rent. It outlines the terms and conditions of the repayment, ensuring that both parties are on the same page regarding the amount owed, the repayment schedule, and any additional charges or interest that may apply. Keywords: — Arizona Promissory Note for Past Due Rent Tenantan— - Landlord - Rent - Past Due - Repayment Agreementen— - Terms and Conditions - Repayment Plan Outstandingin— - Amount Owed - Schedul— - Charges Interesteres— - Legal Document Types of Arizona Promissory Note for Past Due Rent: 1. Simple Promissory Note for Past Due Rent: This type of promissory note is a straightforward agreement between the tenant and the landlord, outlining the repayment terms without any complicated conditions or additional clauses. 2. Promissory Note with Late Fees: In this type of promissory note, the landlord may include late fees for missed or delayed payments. This serves as an incentive for the tenant to adhere to the repayment schedule and fulfill their obligations promptly. 3. Promissory Note with Interest: Some landlords might include an interest clause in the promissory note, where the tenant agrees to pay interest on the past due rent amount. This interest can be a fixed rate or variable, depending on the terms agreed upon. 4. Promissory Note with Installments: If the outstanding rent is significant, the landlord may allow the tenant to make repayments in smaller, manageable installments over an agreed-upon period. This type of promissory note defines the number of installments, their amounts, and the due dates. 5. Promissory Note with Collateral: In certain cases, to secure the repayment of past due rent, the landlord may request the tenant to provide collateral as a guarantee. This collateral can be a valuable asset owned by the tenant, such as a car or property. This type of promissory note includes provisions related to the collateral and its potential forfeiture in case of default. Note: It is essential to consult with a legal professional while drafting or signing any promissory note to ensure compliance with Arizona's laws and regulations.Description: An Arizona Promissory Note for Past Due Rent is a legally binding document used when a tenant is unable to pay their rent on time and as a result, owes past due rent to the landlord. This promissory note serves as an agreement between the tenant and the landlord to establish a repayment plan for the outstanding rent. It outlines the terms and conditions of the repayment, ensuring that both parties are on the same page regarding the amount owed, the repayment schedule, and any additional charges or interest that may apply. Keywords: — Arizona Promissory Note for Past Due Rent Tenantan— - Landlord - Rent - Past Due - Repayment Agreementen— - Terms and Conditions - Repayment Plan Outstandingin— - Amount Owed - Schedul— - Charges Interesteres— - Legal Document Types of Arizona Promissory Note for Past Due Rent: 1. Simple Promissory Note for Past Due Rent: This type of promissory note is a straightforward agreement between the tenant and the landlord, outlining the repayment terms without any complicated conditions or additional clauses. 2. Promissory Note with Late Fees: In this type of promissory note, the landlord may include late fees for missed or delayed payments. This serves as an incentive for the tenant to adhere to the repayment schedule and fulfill their obligations promptly. 3. Promissory Note with Interest: Some landlords might include an interest clause in the promissory note, where the tenant agrees to pay interest on the past due rent amount. This interest can be a fixed rate or variable, depending on the terms agreed upon. 4. Promissory Note with Installments: If the outstanding rent is significant, the landlord may allow the tenant to make repayments in smaller, manageable installments over an agreed-upon period. This type of promissory note defines the number of installments, their amounts, and the due dates. 5. Promissory Note with Collateral: In certain cases, to secure the repayment of past due rent, the landlord may request the tenant to provide collateral as a guarantee. This collateral can be a valuable asset owned by the tenant, such as a car or property. This type of promissory note includes provisions related to the collateral and its potential forfeiture in case of default. Note: It is essential to consult with a legal professional while drafting or signing any promissory note to ensure compliance with Arizona's laws and regulations.
