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.
New York Promissory Note for Past Due Rent is a legally binding document that outlines the terms and conditions agreed upon by the landlord and the tenant for the repayment of overdue rental payments. This promissory note serves as evidence of the tenant's promise to pay the outstanding rent amount within a specified timeframe. The New York Promissory Note for Past Due Rent typically includes key details such as the names and contact information of both parties, the rental property address, the outstanding balance, the due date(s) of the past due rent, the interest rate (if applicable), the repayment schedule, and any additional fees or penalties for late payments. There are various types of New York Promissory Note for Past Due Rent, each suited for different scenarios: 1. Fixed-Term Promissory Note: This type of promissory note establishes a set period within which the tenant must repay the past due rent. It clearly defines the start and end date of the repayment agreement, providing clarity and structure to both parties. 2. Open-Ended Promissory Note: Unlike the fixed-term note, an open-ended promissory note does not specify an end date for the repayment. Instead, it allows for a more flexible repayment schedule, giving the tenant the freedom to repay the past due rent in installments until the full amount is settled. 3. Acceleration Clause Promissory Note: This type includes an acceleration clause, which grants the landlord the right to demand immediate payment of the entire outstanding rent balance if the tenant violates any of the agreed-upon terms. This provision acts as a deterrent against potential breaches and expedites the resolution process. 4. Secured Promissory Note: In certain cases, landlords may require tenants to provide collateral (i.e., security deposit or personal property) to secure the repayment of past due rent. This type of note specifies the terms related to the pledged asset and its release upon full repayment. It is essential to consult with legal professionals or utilize standard templates provided by reliable sources when drafting a New York Promissory Note for Past Due Rent. This helps ensure that all relevant local and state laws are adhered to and that both parties' rights and obligations are safeguarded.
