3 Essential Promissory Note Templates for Rent

Below are three unique, detailed templates for promissory notes designed to secure rent payments. Each template is tailored to address different scenarios landlords and tenants might face.

Template 1: Standard Promissory Note for Rent Payment





Promissory Note for Rent Payment

Date: [Date]

Borrower: [Tenant’s Full Name]
Address: [Tenant’s Address]




Lender: [Landlord’s Full Name]
Address: [Landlord’s Address]

Principal Amount: [Amount] USD

Repayment Terms:

  1. Payment Amount: The Borrower agrees to pay the Lender the total sum of [Amount] USD, representing unpaid rent for the period [Start Date] to [End Date].
  2. Payment Schedule: The Borrower shall make a monthly payment of [Monthly Payment Amount] USD on the [day] of each month, beginning [Start Date of Payments] until [End Date of Payments].
  3. Interest Rate: This Note shall bear interest at a rate of [X]% per annum on the unpaid balance.
  4. Prepayment: Borrower may prepay the principal amount without penalty.

Security: This Note is unsecured.

Signatures:

Borrower’s Signature: _____________________
Date: ____________

Lender’s Signature: _____________________
Date: ____________


Template 2: Interest-Free Promissory Note for Deferred Rent

Interest-Free Promissory Note for Deferred Rent

Date: [Date]

Borrower: [Tenant’s Full Name]
Address: [Tenant’s Address]

Lender: [Landlord’s Full Name]
Address: [Landlord’s Address]

Principal Amount: [Amount] USD

Repayment Terms:

  1. Payment Amount: The total principal sum of [Amount] USD will be paid in full by the end of the lease term.
  2. Payment Schedule: The Borrower agrees to make a lump sum payment on [Final Payment Date] or to make periodic smaller payments on agreed-upon dates.
  3. Interest Rate: This Note is interest-free as a gesture of goodwill.
  4. Late Payment: Any payment not made within [Number of Days Late] days of due date will incur a late fee of [Fee Amount] USD.

Security: This Note is secured by the personal property contained within the leased property located at [Property Address].

Signatures:

Borrower’s Signature: _____________________
Date: ____________

Lender’s Signature: _____________________
Date: ____________


Template 3: Conditional Promissory Note for Rent Adjustment

Conditional Promissory Note for Rent Adjustment

Date: [Date]

Borrower: [Tenant’s Full Name]
Address: [Tenant’s Address]

Lender: [Landlord’s Full Name]
Address: [Landlord’s Address]

Principal Amount: [Amount] USD

Repayment Terms:

  1. Payment Adjustment Conditions: The principal amount is subject to adjustment based on [Condition, e.g., tenant’s income changes, economic conditions].
  2. Payment Schedule: Payments of [Amount] USD are due quarterly, with the first payment due on [Date] and subsequent payments on the last day of each quarter.
  3. Interest Rate: An annual interest rate of [X]% will be applied, recalculating quarterly based on the outstanding balance.
  4. Penalty for Default: Failure to meet the payment schedule will result in [Consequences, e.g., additional fees, potential eviction].

Security: This Note is secured by [Specify Collateral].

Signatures:

Borrower’s Signature: _____________________
Date: ____________

Lender’s Signature: _____________________
Date: ____________


These templates provide a framework that can be tailored to the specific terms agreed upon between the tenant and landlord, ensuring clarity and legality in rent payment agreements.

Table 1: Comparison of Promissory Note Features

FeatureStandard NoteInterest-Free NoteConditional Note
Interest RateX% per annum0% (Interest-free)X% per annum, variable
Payment ScheduleMonthly paymentsLump-sum at term endQuarterly payments
SecurityUnsecuredSecured by personal propertySecured by specified collateral
Late Payment Penalty$[Amount] after [X] days$[Amount] after [X] days$[Amount] after [X] days
PrepaymentAllowed without penaltyAllowed without penaltyAllowed without penalty
Ideal forRegular steady incomeShort-term financial reliefTenants with variable income

Table 2: Key Terms to Include in a Promissory Note

TermDefinitionImportance Level
Principal AmountThe total amount of money being promised for payment.Critical
Interest RateThe percentage of the principal paid in addition to the original amount (if applicable).High
Repayment ScheduleSpecific dates payments are due and the amount of each payment.Critical
Late Payment FeesFees incurred for payments made past the due date.High
Default ProvisionsActions the lender can take if the borrower fails to meet the terms of the note.High
Governing LawThe state law that will interpret the promissory note.Moderate

Table 3: Checklist for Drafting a Promissory Note

Checklist ItemDetails NeededProvided by TenantProvided by Landlord
Verify Tenant IdentityFull legal name and addressYesNo
Determine Loan AmountTotal rent amount overdue or deferredNoYes
Set Repayment TermsDates, amounts, interest (if any)NoYes
Decide on SecurityCollateral or security agreementYesNo
Draft NoteUse template, adjust terms as neededNoYes
SignaturesBoth parties sign to validate the noteYesYes