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.
An Idaho Promissory Note for Past Due Rent is a legally binding document used by landlords and tenants in the state of Idaho to establish a formal agreement for the repayment of overdue rental payments. This note serves as a written acknowledgement of the tenant's outstanding rent balance and outlines the terms and conditions for repayment. The Idaho Promissory Note for Past Due Rent includes relevant keywords such as "Idaho," "promissory note," "past due rent," "repayment," and "landlord-tenant agreement." This note can be customized to accommodate various types of situations and can be modified based on the specific terms agreed upon by the landlord and tenant. Some common types of Idaho Promissory Notes for Past Due Rent include: 1. Lump Sum Repayment: This type of promissory note outlines an agreement where the tenant agrees to repay the full balance of past due rent in a single, lump sum payment by a specific due date. The terms may include any applicable late fees, interest, or penalties. 2. Installment Repayment: In situations where the tenant is unable to repay the entire balance at once, an installment repayment plan can be agreed upon. The promissory note will specify the amount to be paid each month, along with any additional charges or interest. The due dates and the duration of the repayment period will also be mentioned. 3. Deferred Repayment: This type of promissory note allows the tenant to defer a portion of the past due rent to a later date, usually after the lease term ends. The note will specify the conditions for the deferred repayment, such as the agreed-upon payment date, interest, and any additional charges. 4. Personal Guarantor Agreement: In cases where the tenant is unable to make the required repayment, a personal guarantor may be involved. This type of promissory note ensures that the personal guarantor will be responsible for the repayment of the past due rent if the tenant fails to fulfill their obligations. It is essential for both landlords and tenants to carefully read and understand the terms of the Idaho Promissory Note for Past Due Rent before signing. Consulting with legal professionals or utilizing attorney-reviewed templates can help ensure the document's accuracy and compliance with applicable laws in the state of Idaho.
