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.
The District of Columbia Promissory Note for Past Due Rent is a legal document that serves as an agreement between a tenant and a landlord in the District of Columbia. It outlines the terms and conditions under which the tenant promises to repay the past due rent to the landlord. In the District of Columbia, there are different types of Promissory Notes for Past Due Rent, each serving specific purposes: 1. Residential Promissory Note: This type of promissory note is used when the past due rent is related to a residential property. It outlines the details of the tenant, including their name, address, and contact information, as well as the landlord's information. The note includes the amount of past due rent, the agreed-upon repayment schedule, and any late fees or penalties. 2. Commercial Promissory Note: When the past due rent concerns a commercial property, a commercial promissory note is utilized. This document contains similar information to the residential promissory note, but with specific provisions tailored to commercial lease agreements, such as clauses regarding business activities and restrictions. 3. Short-Term Promissory Note: This type of promissory note is commonly used when the tenant requires a short-term extension to pay past due rent. It specifies a specific timeframe within which the tenant must repay the outstanding amount, often within weeks or a few months. 4. Lump Sum Promissory Note: The lump sum promissory note is employed when the tenant agrees to repay the past due amount in one single payment. Typically, this note states the due date and the full amount owed, emphasizing the payment as a one-time settlement. 5. Installment Promissory Note: This promissory note allows the tenant to repay the past due rent in multiple installments over a specified period. This document includes the dates and amounts of each installment, ensuring a structured repayment plan. It is crucial to consult with a legal professional or seek guidance from the District of Columbia's housing authorities to ensure that the promissory note complies with local laws and regulations.The District of Columbia Promissory Note for Past Due Rent is a legal document that serves as an agreement between a tenant and a landlord in the District of Columbia. It outlines the terms and conditions under which the tenant promises to repay the past due rent to the landlord. In the District of Columbia, there are different types of Promissory Notes for Past Due Rent, each serving specific purposes: 1. Residential Promissory Note: This type of promissory note is used when the past due rent is related to a residential property. It outlines the details of the tenant, including their name, address, and contact information, as well as the landlord's information. The note includes the amount of past due rent, the agreed-upon repayment schedule, and any late fees or penalties. 2. Commercial Promissory Note: When the past due rent concerns a commercial property, a commercial promissory note is utilized. This document contains similar information to the residential promissory note, but with specific provisions tailored to commercial lease agreements, such as clauses regarding business activities and restrictions. 3. Short-Term Promissory Note: This type of promissory note is commonly used when the tenant requires a short-term extension to pay past due rent. It specifies a specific timeframe within which the tenant must repay the outstanding amount, often within weeks or a few months. 4. Lump Sum Promissory Note: The lump sum promissory note is employed when the tenant agrees to repay the past due amount in one single payment. Typically, this note states the due date and the full amount owed, emphasizing the payment as a one-time settlement. 5. Installment Promissory Note: This promissory note allows the tenant to repay the past due rent in multiple installments over a specified period. This document includes the dates and amounts of each installment, ensuring a structured repayment plan. It is crucial to consult with a legal professional or seek guidance from the District of Columbia's housing authorities to ensure that the promissory note complies with local laws and regulations.