Agreement For Partial Payment
Landlords and tenants agree that the monthly rent for the above premises remains at $1,000.00 per month. Landlords and tenants agree that the landlord owes $400.00 in rent from the date of this amendment. The landlord and tenant also agree that this rent change will apply for the next 2 monthly rental periods and includes the monthly rent due during the change period. Therefore, the total amount covered by this lease agreement is $2,400.00 USD, consisting of $400 rent of $1,000 for May and $1,000 rent for June. Every landlord has already heard this statement: “Never accept partial payments, otherwise you will not be able to get your property or money back in court if you have to chase the tenant away.” While this is a widespread belief, is it true that you will never be able to accept partial payments? In order to protect both the lessor and the tenant, any agreement on partial payments must be in writing and clearly state a payment schedule or schedule in which all payments must be made and clearly indicate that this is a temporary change to the lease agreement. Below is an example agreement for a unit that rents for 1000 $US per month, the tenant owes 400 $US in additional rental and the tenant has agreed to make partial payments for 2 months until they are caught up. (In this scenario, the tenant is presumed to be paid two weeks at their workplace and has agreed to pay the rents in two weeks) This type of situation can initially be difficult to understand, which is why today we will focus more specifically on how to obtain a partial payment agreement. Then we will share with you our partial payment rate agreement for example. The tenant must continue to pay the full and regular monthly rent of 1,000.00 USD, due on the first of the month from 1 July 2011.
Apart from the rent change mentioned above, all aspects of the rental agreement between the lessor and the tenant remain the same. In cases where you need to request an evacuation, accepting a partial payment may delay the entire evacuation process, as you must retry an eviction notice. In a way, accepting a partial payment in this situation gives the tenant the right to stay longer in your property without paying the full amount. If the term “partial payments” is used in the rental world, the exact meaning depends on the situation in which you use it. Sometimes partial payments are small amounts of rent that are paid even when more money is owed. In other times, partial payments are instalments paid on the rent due. In our example document, we have room for the following payment information: the type of partial payments we are talking about today can also be called installments and they are used whenever a tenant is ready and willing to repay the late rent. By creating a partial payment rate agreement between you and the tenant, you can keep your leased property while recovering the money owed to you.
When is it in your best interest to create such a partial payment agreement? Many landlords never allow a tenant to continue living in their property if they are not paid in rent, and that`s an understandable feeling. However, there are some situations where setting up a tiered payment plan can work. Finally, at the end of the contract, you should add a disclaimer that repeats that the original terms of the lease are still fully effective. This document can be considered as a complement to the initial lease. The terms here do not replace or alter the original lease. If you include these three details, you and the tenant are on the same page about the amount to be paid.