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 South Dakota Promissory Note for Past Due Rent is a legally binding document used to formalize an agreement between a landlord and a tenant regarding the payment of overdue rent. When a tenant falls behind on rent payment, this note enables both parties to establish a clear plan for repayment. Keywords: South Dakota, Promissory Note, past due rent, landlord-tenant agreement, overdue rent, repayment plan. Types of South Dakota Promissory Note for Past Due Rent: 1. Installment Promissory Note for Past Due Rent: This type of note outlines a repayment plan where the overdue rent is divided into equal installments over a specific period. The tenant agrees to make regular payments until the entire amount is paid off. 2. Lump Sum Promissory Note for Past Due Rent: In this case, the tenant agrees to repay the entire past due rent in a single payment by a specified date. This type of note is suitable for tenants who can settle the debt in one go. 3. Modified Lease Agreement with Promissory Note: Sometimes, a landlord and tenant may choose to modify the existing lease agreement along with the promissory note to accommodate the repayment of past due rent. This type of note is customized based on the specific terms agreed upon by both parties. 4. Secured Promissory Note for Past Due Rent: In situations where the landlord requires additional assurance, the tenant may provide collateral (such as property or valuables) to secure the promissory note. This offers the landlord added protection in case the tenant defaults on repayment. Remember, it is crucial to consult legal professionals or use official templates to ensure the Promissory Note for Past Due Rent complies with the laws and regulations specific to South Dakota.
