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 promissory note is a legal document that outlines the terms and conditions of a loan agreement between a borrower and a lender. In the case of past due rent, an Oregon Promissory Note for Past Due Rent serves as a written agreement between a tenant and a landlord when the tenant has fallen behind on their rental payments. This note provides a formal arrangement for the repayment of the outstanding rent amount. The Oregon Promissory Note for Past Due Rent typically includes the following key elements: 1. Parties Involved: The promissory note clearly identifies the tenant, who owes the past due rent, and the landlord, who is entitled to receive the payment. 2. Loan Amount: The outstanding rent amount owed by the tenant is stated explicitly in the promissory note. 3. Payment Schedule: The note specifies the repayment terms and schedule agreed upon by both parties. It outlines the frequency, such as weekly, bi-weekly, or monthly, and a specific date for the payment to be made. The due date for the initial payment is also included. 4. Interest Rate (if applicable): In some cases, the promissory note may include an agreed-upon interest rate for the outstanding rent amount. The interest rate, if applicable, is mentioned along with the payment schedule. 5. Late Fees: The note may specify any additional charges or late fees that will be imposed if the tenant fails to make timely payments. This helps ensure compliance with the agreed-upon payment schedule. 6. Collateral (if applicable): If the landlord requires additional security, such as a personal property or a guarantee from a third party, it should be mentioned in the note. Collateral provides an added level of assurance for the landlord that the tenant will fulfill their financial obligations. Types of Oregon Promissory Note for Past Due Rent: 1. Fixed-Term Promissory Note: This type of promissory note includes a specific repayment period, outlining the exact number of installments and dates for repayment until the entire past due rent is cleared. 2. Open-Ended Promissory Note: With an open-ended promissory note, the repayment period might not be fixed. It provides flexibility in terms of when and how the past due rent amount will be repaid. This type of note is usually used when the landlord wants to provide the tenant with more time to repay the arrears. 3. Secured Promissory Note: In certain cases, a landlord may require the tenant to secure the outstanding rent debt with collateral. This type of note includes details about the collateral, ensuring that the landlord has recourse in case of non-payment. 4. Acceleration Clause Promissory Note: An acceleration clause allows the landlord to demand immediate repayment of the entire outstanding rent balance if the tenant fails to make payments as agreed upon in the note. Creating an Oregon Promissory Note for Past Due Rent helps establish a clear agreement between the tenant and the landlord, ensuring both parties understand their rights and obligations. It serves as a legal protection for the landlord, providing a formal record of the repayment arrangement and promoting a transparent resolution of any past due rent situation.A promissory note is a legal document that outlines the terms and conditions of a loan agreement between a borrower and a lender. In the case of past due rent, an Oregon Promissory Note for Past Due Rent serves as a written agreement between a tenant and a landlord when the tenant has fallen behind on their rental payments. This note provides a formal arrangement for the repayment of the outstanding rent amount. The Oregon Promissory Note for Past Due Rent typically includes the following key elements: 1. Parties Involved: The promissory note clearly identifies the tenant, who owes the past due rent, and the landlord, who is entitled to receive the payment. 2. Loan Amount: The outstanding rent amount owed by the tenant is stated explicitly in the promissory note. 3. Payment Schedule: The note specifies the repayment terms and schedule agreed upon by both parties. It outlines the frequency, such as weekly, bi-weekly, or monthly, and a specific date for the payment to be made. The due date for the initial payment is also included. 4. Interest Rate (if applicable): In some cases, the promissory note may include an agreed-upon interest rate for the outstanding rent amount. The interest rate, if applicable, is mentioned along with the payment schedule. 5. Late Fees: The note may specify any additional charges or late fees that will be imposed if the tenant fails to make timely payments. This helps ensure compliance with the agreed-upon payment schedule. 6. Collateral (if applicable): If the landlord requires additional security, such as a personal property or a guarantee from a third party, it should be mentioned in the note. Collateral provides an added level of assurance for the landlord that the tenant will fulfill their financial obligations. Types of Oregon Promissory Note for Past Due Rent: 1. Fixed-Term Promissory Note: This type of promissory note includes a specific repayment period, outlining the exact number of installments and dates for repayment until the entire past due rent is cleared. 2. Open-Ended Promissory Note: With an open-ended promissory note, the repayment period might not be fixed. It provides flexibility in terms of when and how the past due rent amount will be repaid. This type of note is usually used when the landlord wants to provide the tenant with more time to repay the arrears. 3. Secured Promissory Note: In certain cases, a landlord may require the tenant to secure the outstanding rent debt with collateral. This type of note includes details about the collateral, ensuring that the landlord has recourse in case of non-payment. 4. Acceleration Clause Promissory Note: An acceleration clause allows the landlord to demand immediate repayment of the entire outstanding rent balance if the tenant fails to make payments as agreed upon in the note. Creating an Oregon Promissory Note for Past Due Rent helps establish a clear agreement between the tenant and the landlord, ensuring both parties understand their rights and obligations. It serves as a legal protection for the landlord, providing a formal record of the repayment arrangement and promoting a transparent resolution of any past due rent situation.
