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 Nevada Promissory Note for Past Due Rent is a legal document that outlines an agreement between the landlord and the tenant regarding the repayment of outstanding rent payments. It serves as a written contract that both parties can refer to when resolving payment issues. The Nevada Promissory Note for Past Due Rent typically includes details such as the names and contact information of the landlord and tenant, the amount of rent owed, the due date of the past-due rent, the agreed-upon repayment plan, and any late fees or penalties. There are different types of Nevada Promissory Notes for Past Due Rent, depending on the specific circumstances of the rental agreement. Some common variations may include: 1. Lump Sum Repayment Plan: This type of promissory note states that the tenant agrees to repay the entire past due rent in a single payment by a specific date. It can be beneficial for tenants who have the means to pay off the outstanding amount quickly. 2. Installment Repayment Plan: In this case, the promissory note establishes a schedule for the payment of the outstanding rent in multiple installments over a specified period. This option allows tenants to spread out their payments and make them more manageable. 3. Deferred Repayment Plan: This type of promissory note allows tenants to delay their past due rent payment until a later date agreed upon by both parties. This option can be helpful for tenants facing temporary financial hardships. 4. Modified Rental Agreement: In certain situations, a landlord may choose to modify the existing rental agreement and incorporate the repayment plan directly into the lease terms. This provides a more comprehensive solution by adjusting rent payments going forward. It is essential for both landlords and tenants to carefully review and understand the terms of the Nevada Promissory Note for Past Due Rent before signing it. Consulting legal counsel is always recommended ensuring compliance with Nevada laws and to protect the rights and interests of both parties.
