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 Montana Promissory Note for Past Due Rent is a legally binding document used to establish an agreement between a landlord and a tenant regarding the repayment of rent that is overdue. It outlines the terms and conditions under which the tenant agrees to repay the past due rent amount, including the repayment schedule, interest rates (if applicable), and any late fees or penalties that may be incurred. One type of Montana Promissory Note for Past Due Rent is the Fixed Repayment Promissory Note. This note establishes a specific repayment schedule, stating the amount of the monthly installments, the duration of the repayment period, and the due date for each payment. Another type of Montana Promissory Note for Past Due Rent is the Lump Sum Promissory Note. This note requires the tenant to repay the entire past due rent amount in one lump sum payment by a specified due date. The Montana Promissory Note for Past Due Rent may also include clauses regarding default consequences, such as the acceleration of repayment if the tenant fails to make timely payments. Additionally, it might require the tenant to provide collateral or a third-party guarantor to secure the repayment. It is crucial to have the Montana Promissory Note for Past Due Rent properly executed, signed by both the landlord and the tenant, and preferably witnessed or notarized to ensure its authenticity and enforceability in the event of a dispute.A Montana Promissory Note for Past Due Rent is a legally binding document used to establish an agreement between a landlord and a tenant regarding the repayment of rent that is overdue. It outlines the terms and conditions under which the tenant agrees to repay the past due rent amount, including the repayment schedule, interest rates (if applicable), and any late fees or penalties that may be incurred. One type of Montana Promissory Note for Past Due Rent is the Fixed Repayment Promissory Note. This note establishes a specific repayment schedule, stating the amount of the monthly installments, the duration of the repayment period, and the due date for each payment. Another type of Montana Promissory Note for Past Due Rent is the Lump Sum Promissory Note. This note requires the tenant to repay the entire past due rent amount in one lump sum payment by a specified due date. The Montana Promissory Note for Past Due Rent may also include clauses regarding default consequences, such as the acceleration of repayment if the tenant fails to make timely payments. Additionally, it might require the tenant to provide collateral or a third-party guarantor to secure the repayment. It is crucial to have the Montana Promissory Note for Past Due Rent properly executed, signed by both the landlord and the tenant, and preferably witnessed or notarized to ensure its authenticity and enforceability in the event of a dispute.
