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 Franklin Ohio Promissory Note for Past Due Rent is a legally binding document used in the state of Ohio to establish an agreement between a landlord and a tenant for the payment of past due rent. It serves as a written record of the tenant's promise to repay the outstanding rent amount within a specified period of time. Keywords: Franklin Ohio, Promissory Note, Past Due Rent, landlord, tenant, payment, outstanding rent, repayment, specified period of time, legally binding, agreement. Different types of Franklin Ohio Promissory Note for Past Due Rent may include: 1. Lump Sum Repayment Note: This type of promissory note requires the tenant to make a one-time lump sum payment to settle the past due rent in full. 2. Installment Repayment Note: With this type of note, the tenant agrees to pay the past due rent in regular installments over a specific period, typically in monthly or weekly payments. 3. Interest-Bearing Note: This note includes an added interest rate to the past due rent amount, requiring the tenant to not only repay the outstanding rent but also any additional interest accrued. 4. Balloon Payment Note: In this case, the tenant agrees to make regular payments towards the past due rent, with a significantly larger final payment, known as a balloon payment, to be made at the end of the agreed-upon period. 5. Secured Promissory Note: This note involves the inclusion of collateral, such as valuable assets owned by the tenant, that the landlord may have the right to claim in the event of non-payment. It is crucial for both the landlord and the tenant to thoroughly understand the terms and conditions outlined in the Franklin Ohio Promissory Note for Past Due Rent before signing it. This document protects the rights of both parties and ensures a clear understanding of the repayment agreement, thus avoiding any potential disputes in the future.A Franklin Ohio Promissory Note for Past Due Rent is a legally binding document used in the state of Ohio to establish an agreement between a landlord and a tenant for the payment of past due rent. It serves as a written record of the tenant's promise to repay the outstanding rent amount within a specified period of time. Keywords: Franklin Ohio, Promissory Note, Past Due Rent, landlord, tenant, payment, outstanding rent, repayment, specified period of time, legally binding, agreement. Different types of Franklin Ohio Promissory Note for Past Due Rent may include: 1. Lump Sum Repayment Note: This type of promissory note requires the tenant to make a one-time lump sum payment to settle the past due rent in full. 2. Installment Repayment Note: With this type of note, the tenant agrees to pay the past due rent in regular installments over a specific period, typically in monthly or weekly payments. 3. Interest-Bearing Note: This note includes an added interest rate to the past due rent amount, requiring the tenant to not only repay the outstanding rent but also any additional interest accrued. 4. Balloon Payment Note: In this case, the tenant agrees to make regular payments towards the past due rent, with a significantly larger final payment, known as a balloon payment, to be made at the end of the agreed-upon period. 5. Secured Promissory Note: This note involves the inclusion of collateral, such as valuable assets owned by the tenant, that the landlord may have the right to claim in the event of non-payment. It is crucial for both the landlord and the tenant to thoroughly understand the terms and conditions outlined in the Franklin Ohio Promissory Note for Past Due Rent before signing it. This document protects the rights of both parties and ensures a clear understanding of the repayment agreement, thus avoiding any potential disputes in the future.
