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Promissory Notes for Late Raent - Landlord Forum thread 162332

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Promissory Notes for Late Raent by MKW (Iowa) on September 14, 2008 @08:15

Has anyone had success with requiring a tenant to sign a promissory note even if the rent is going to be a week late? The note would simply say the tenants acknowledges that he/she owes $xxx.xx in rent & $xx.xx in late fees and schedules the payment to be made in full on such and such a date.

In the case of seriously delinquent rent, the prommissory note has a schedule of repayment with specific amounts on specific dates being listed.

If, in the case it is signed in response to a 3 Day Notice to Pay Rent, there is a proviso as to reneging, that the 3 Day is still in force will still usable in court. (is that legal?)

It also has wording that requires the tenant to update employment information as the source of income to be considered in the promissory note.

Is anyone currently using this or has had success with such?

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Re: Promissory Notes for Late Raent by TENANT (CA) on September 14, 2008 @09:54 [ Reply ]
The 3 day notice in invalid when they sign a payment plan. The wording saying it is still valid is not enforceable. You will need to give another 3 day notice at the end of it.

It is kind of up to you if you want to give someone a break and let them schedule a payment plan. If you do, I would use a signed payment plan such as the one you suggest. I would not do it for just any reason. But, sometimes I'm a sucker for a good sob story.

Re: Promissory Notes for Late Raent by cttlandlord (ct) on September 14, 2008 @13:14 [ Reply ]
trid that once, back in my newbie landlord days , stillowes the money
Re: Promissory Notes for Late Raent by MKW on September 14, 2008 @18:46 [ Reply ]
Did you not inforce the terms of the Prom Note?
Re: Promissory Notes for Late Raent by LE (GA) on September 15, 2008 @07:24 [ Reply ]
I use them, but there's no legal backing for it. This doesn't fast track future evictions. You still have to serve another 3 day, b/c you let them stay there without paying.

I use this more like a warning. It gives them a chance to catch up and it informs them I'm not taking any junk from them. I WILL evict them if they continue to pay late(also, a 10% late fee helps drive this home).

For me, it just builds a better case for me when I go to court. I can show the judge they were late in the past and I did everything I could to help them. Then, if they try some frivolous crap(like claiming I didn't repair garbage disposal w/in 24 hrs, the judge will see right through them.

Re: Promissory Notes for Late Raent by Anonymous on November 10, 2008 @19:48 [ Reply ]
I came across this by luck.

I have a client that living in an older apartment complex that he just brought to my attention they have some sort of document(promissary note) that bypasses his lease. I've never heard of anything like this and I was wondering if its legal and if there is anything he can do about it. I'm planning on scanning it. Anyway, anytime anyone in the complex has to pay the rent late. Say for example, the tenant tells the management company in advance they will be a day late or they swapped jobs and say the rent will be on a certain date. They will forceably demand the tenant sign this a custom made "promissary" note that basically says if they for whatever reason not make the payment on that date stated. The landlord can surpass the lease and immediately take possession of the apartment and everything inside.

No court, no eviction, and no other proceedings.

Apparently, they force people to sign it saying they have no choice. When he told me, I told him the only legal thing they can do is get mad and file for an eviction. Besides, the obvious of just not being late, things happen and this seems to stomp all over peoples rights. This really upset me as I thought about all the small families and single parents that might have feel victim to this trap and then sadly could not make the full or any of they payment on that date and did it at a later date. Then they legally lost anything.

Is this legal? Is there anything that can be done to stop them?

Here is main part of that document:

RESIDENT understand and agrees that failure to pay the amounts due as stipulated herein will result in MANAGEMENT taking possession of the Premises occupied by the RESIDENT: that possession is granted by the RESIDENTS signature attached hertoe: that RESIDENT reaffirms and ackonowleges that they surrendto management the Premisies upon RESIDENTS failure to pay the amounts due as stipulated herrein; that RESIDENT reaffirms and gives MANAGEMENT the right to take possession of the Premises; that possension may be taken without further notice by RESIDENT or any othe party or jursidiction, legal, or otherwise is required. etc..

Theres more but thats pretty much the main part of the concern.

Now don't get me wrong. I know hell stick to his agreed upon late period and pay when he stated. But isn't this illegal? Isn't this him giving up his rights on this lease? I know maybe I'm the one really upset about this letter now. Thinking about all the other people in that complex that might have been "got" or actually lost thier apartments agreeing to this. Am I overreacting?

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