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 Nassau New York Promissory Note for Past Due Rent is a legal document that outlines an agreement between a landlord and a tenant regarding the repayment of outstanding rent. This note serves as a binding contract, allowing tenants to acknowledge their unpaid rent and establish a repayment plan. It offers peace of mind to both parties by setting clear terms and conditions for the repayment process, ensuring that rent arrears are resolved in a structured and organized manner. In Nassau County, New York, there are different types of Promissory Notes for Past Due Rent that cater to varying situations: 1. Simple Promissory Note: This is a basic agreement that acknowledges the tenant's outstanding rent and stipulates the repayment terms, such as the duration, interest (if applicable), and payment method. It is commonly used when the tenant has fallen behind on rent payments but wishes to rectify the situation. 2. Installment Promissory Note: This type of note divides the total amount of past due rent into smaller, manageable installments. The tenant agrees to make regular payments over a specified period until the arrears are fully paid off. This option is often preferred when the tenant needs more time to settle their outstanding balance. 3. Lump-Sum Promissory Note: In certain cases, the tenant may choose to repay the entire past due rent in one lump sum payment. This type of note outlines the agreed-upon amount and the deadline by which the total sum must be paid. It is suitable when the tenant can acquire a significant amount of money within a short period. Regardless of the type, a Nassau New York Promissory Note for Past Due Rent should include key details such as the names of both parties, the rental property address, the total amount of rent in arrears, the repayment terms, any applicable interest rates, and the consequences of defaulting on the agreement. It is crucial that all parties thoroughly read and understand the terms before signing the promissory note to ensure a fair and mutually beneficial resolution.
