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 Tennessee Promissory Note for Past Due Rent is a legal document that outlines an agreement between a landlord and tenant for the repayment of rent that is past due. It serves as a written guarantee that the tenant will make scheduled payments towards their outstanding rent until it is fully repaid. Keywords: Tennessee, Promissory Note, past due rent, landlord, tenant, repayment, outstanding rent, scheduled payments, legal document, guarantee. There are two common types of Tennessee Promissory Notes for Past Due Rent: 1. Installment Promissory Note: This type of promissory note for past due rent establishes a repayment plan where the tenant agrees to make regular installment payments until the outstanding rent is fully paid. The note specifies the amount of each installment, the frequency of payments, and the due dates. It also includes details regarding consequences for defaulting on payments. 2. Lump Sum Promissory Note: In some cases, the landlord and tenant may agree to settle the past due rent amount in a single lump sum payment rather than installments. This type of promissory note outlines the agreed-upon amount, due date, and any penalties or interest that may be incurred if the payment is not made on time. Regardless of the type of Tennessee Promissory Note for Past Due Rent used, it is essential to include key elements such as the names and addresses of the parties involved, the total amount of past due rent, the repayment terms, interest rates (if any), late fees, and any additional terms or conditions deemed necessary. Tennessee's law requires that promissory notes be in writing and signed by both the landlord and tenant to be legally enforceable. It is advisable to consult with an attorney or use a professionally prepared template to ensure that the promissory note complies with all applicable laws and accurately reflects the specific agreement between the landlord and tenant.
