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.
A Georgia Promissory Note for Past Due Rent is a legally binding document that outlines the agreement between a landlord and tenant regarding past due rental payments. This document serves as a written promise from the tenant to the landlord to repay the outstanding rent within a specified timeframe, along with any applicable late fees or interest. The Georgia Promissory Note for Past Due Rent is a crucial tool for resolving rental payment disputes and ensuring that both parties are clear on the terms of repayment. It helps protect the landlord's rights to collect unpaid rent and provides a clear plan for the tenant to catch up on their overdue obligations. In Georgia, there are different types of Promissory Notes for Past Due Rent that may be used based on the specific circumstances or preferences of the parties involved. While the exact names may vary, some common variations include: 1. Lump Sum Payment Promissory Note: This type of note requires the tenant to make a one-time payment to cover the entire outstanding rental balance. It may include a provision for any additional late fees or interest accrued. 2. Installment-Based Promissory Note: With this type of note, the tenant agrees to make regular installment payments over an agreed-upon period until the total outstanding rent is fully repaid. The note may specify the frequency of payments (e.g., monthly, bi-weekly) and the amount of each payment. 3. Interest-Bearing Promissory Note: This note includes an additional provision for charging interest on the past due rent amount. The interest rate is determined by the parties and may be based on state laws or mutual agreement. 4. Secured Promissory Note: In certain cases, the landlord may require the tenant to provide collateral to secure the repayment of past due rent. This could be in the form of a security deposit, personal property, or any mutually agreed-upon asset. Regardless of the specific type, a Georgia Promissory Note for Past Due Rent should include essential information such as the names and addresses of both the landlord and tenant, the amount of outstanding rent, the agreed-upon repayment terms, including the due date, late fees (if any), and any applicable interest rates or additional conditions. By utilizing a Georgia Promissory Note for Past Due Rent, landlords and tenants can establish clear expectations and a plan for resolving overdue rent payments, ensuring transparency and protection of their respective rights.
