A partial payment contract is a legally binding document that establishes a plan by which a tenant can repay the outstanding rent, according to a staggered payment schedule. For example, the plan could reimburse them $200 per month in addition to the rent they owe. The document guarantees that you are reimbursed, but allows the tenant to continue living there. In cases where you have to apply for eviction, accepting a partial payment can delay the entire deportation process, as you must start with an eviction notice from the outset. 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. Many landlords have been told that they should not accept partial payments from tenants if it is too late. While this is not always good advice, there are reasons why partial payments have gained a negative reputation. Preventing forced evictions and putting in place a payment plan that works for both parties can be an advantageous way to keep your profits safe without the stress or struggle of an evacuation. These conditions for partial payment agreements are not correct in all situations, but they might be correct with you! The Tenant acknowledges that the tenant`s failure to pay one of the above rents in a timely manner gives the landlord the right to have a three-day delay issued to request payment of the amounts owing to the date of the 3-day period and to initiate eviction proceedings at the end of the 3 days. If you include these three details, you and the tenant of the same page will be on the amount they will have to pay. Note that the due payments must be paid in addition to the usual monthly rent.
Each partial payment is an additional payment. If you are sure you have chosen quality tenants and simply give them a second chance to prove themselves, setting up a payment contract can be a less risky way to do so. While you end up at the end for evacuation anyway, this is not a bad way to allow the tenant extra time to make up for payments. The most common partial payment situation we have seen are partial rent payments. This can be done in different ways. First, the tenant who is unable to pay full rent and only pays part of the rent to the landlord with the promise to make the rest of the payment either later in the month or all with next month`s rent. Second, it is the tenant who makes substantial erratic payments, and that is the most problematic of the two.