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 New Jersey Promissory Note for Past Due Rent is a legal document that outlines the terms and conditions under which a tenant agrees to pay overdue rent in installments to the landlord. This note serves as a written agreement between both parties, providing a clear record of the arrangement made to settle outstanding rent debts. Keywords: 1. Promissory Note: A legally binding written agreement to repay a debt. 2. New Jersey: Referring to the state where the Promissory Note is being utilized. 3. Past Due Rent: Rent payments that have not been paid on time and are now in arrears. 4. Landlord: The individual or entity who owns the property being rented out. 5. Tenant: The individual or party who is leasing the property and is responsible for paying rent. 6. Installments: Defined and scheduled payments made over a specific period. 7. Legal document: A written contract that holds both parties accountable and can be enforced in a court of law. 8. Outstanding rent debts: Rent that remains unpaid after the due date specified in the lease agreement. 9. Arrears: Money owed that is overdue or in default. 10. Terms and conditions: The specific provisions and agreements regarding the repayment of past due rent. Different Types of New Jersey Promissory Note for Past Due Rent: 1. Standard New Jersey Promissory Note for Past Due Rent: a basic document stating the tenant's promise to repay overdue rent in installments. 2. New Jersey Promissory Note for Past Due Rent with Interest: similar to the standard note, but includes an agreed-upon rate of interest on the outstanding balance. 3. New Jersey Promissory Note for Past Due Rent with Late Fees: includes late fees imposed on the tenant for missed installments or failure to pay on time. 4. New Jersey Promissory Note for Past Due Rent with Collateral: involves the provision of collateral by the tenant as security for the outstanding rent debts, such as a valuable asset or property. 5. New Jersey Promissory Note for Past Due Rent with Modified Repayment Schedule: allows for a modified repayment plan tailored to the tenant's financial circumstances, ensuring a more manageable payment schedule. 6. New Jersey Promissory Note for Past Due Rent with Legal Consequences for Non-Payment: specifies that failure to adhere to the terms of the note can result in legal actions such as eviction or legal fees. By using a New Jersey Promissory Note for Past Due Rent, both landlords and tenants can ensure a clear and documented understanding of the repayment arrangements for overdue rent, protecting the rights and interests of both parties involved in the agreement.
