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.
The Wisconsin Promissory Note for Past Due Rent is a legally binding document that outlines an agreement between a landlord and tenant regarding late rent payments. This promissory note serves as a written record of the borrower's promise to repay the past-due rent and defines the terms and conditions of the repayment arrangement. It includes relevant details such as the parties involved, the amount of past-due rent, the due date for repayment, the interest rate (if applicable), and any penalties or fees in case of default. In Wisconsin, there are two common types of Promissory Notes for Past Due Rent that may be used: 1. Wisconsin Promissory Note for Past Due Rent — Lump Sum Repayment: This type of promissory note establishes an agreement wherein the tenant agrees to repay the past-due rent in a single lump sum payment. The promissory note will include the due date for the repayment, any applicable interest, and any penalties for non-payment. 2. Wisconsin Promissory Note for Past Due Rent — Installment Repayment: This type of promissory note establishes an agreement wherein the tenant agrees to repay the past-due rent in multiple installments over an agreed-upon period. The promissory note will outline the repayment schedule, including the due dates for each installment, any interest charged on the outstanding balance, and any penalties for non-payment or late payment. It is important to note that both types of Promissory Notes for Past Due Rent in Wisconsin protect the rights of both the landlord and the tenant. They provide a clear understanding of the repayment terms, helping to avoid misunderstandings and potential legal disputes. Additionally, these promissory notes can serve as valuable evidence in court if the tenant fails to fulfill their repayment obligations. Landlords in Wisconsin are encouraged to consult with a legal professional or use a reliable legal template service to ensure the Promissory Note for Past Due Rent complies with state laws and includes all necessary provisions for a binding agreement.The Wisconsin Promissory Note for Past Due Rent is a legally binding document that outlines an agreement between a landlord and tenant regarding late rent payments. This promissory note serves as a written record of the borrower's promise to repay the past-due rent and defines the terms and conditions of the repayment arrangement. It includes relevant details such as the parties involved, the amount of past-due rent, the due date for repayment, the interest rate (if applicable), and any penalties or fees in case of default. In Wisconsin, there are two common types of Promissory Notes for Past Due Rent that may be used: 1. Wisconsin Promissory Note for Past Due Rent — Lump Sum Repayment: This type of promissory note establishes an agreement wherein the tenant agrees to repay the past-due rent in a single lump sum payment. The promissory note will include the due date for the repayment, any applicable interest, and any penalties for non-payment. 2. Wisconsin Promissory Note for Past Due Rent — Installment Repayment: This type of promissory note establishes an agreement wherein the tenant agrees to repay the past-due rent in multiple installments over an agreed-upon period. The promissory note will outline the repayment schedule, including the due dates for each installment, any interest charged on the outstanding balance, and any penalties for non-payment or late payment. It is important to note that both types of Promissory Notes for Past Due Rent in Wisconsin protect the rights of both the landlord and the tenant. They provide a clear understanding of the repayment terms, helping to avoid misunderstandings and potential legal disputes. Additionally, these promissory notes can serve as valuable evidence in court if the tenant fails to fulfill their repayment obligations. Landlords in Wisconsin are encouraged to consult with a legal professional or use a reliable legal template service to ensure the Promissory Note for Past Due Rent complies with state laws and includes all necessary provisions for a binding agreement.
