Partial Payment Agreement

Purpose
The purpose of this form is for you to have a professionally drafted form to use when you want to work out a payment arrangement with a tenant who owes overdue rent or other amounts. With this form, the tenant acknowledges in writing that he owes specific amounts for unpaid rent, late fees, and any other amount that is owed. It is to your advantage to get this acknowledgment in writing, so that the tenant cannot later claim that he does not owe these amounts.

When to Use
You may use this form if a tenant becomes delinquent on any amounts owed and you want to make an arrangement to allow the tenant to pay overdue amounts in certain installment payments. You would not want to use this form if you are not interested in working things out with the tenant. For example, if you no longer want to have the tenant at your facility and he will not voluntarily vacate, you either need to proceed with the eviction or the foreclosure process. By signing the “Partial Payment Agreement,” you and the tenant are agreeing that, for so long as the tenant honors the terms of the agreement and keeps other rent (rent that comes due after the date of the agreement) current, you will not evict him or foreclose on him. But, if he defaults, then you may proceed with eviction or foreclosure immediately.

Tips for Use
Institute some kind of “tickler” system so that you can easily track the due dates for the installment payments under the payment plan agreement and also when you can proceed with eviction or foreclosure if the tenant misses a payment under the partial payment agreement. And remember, this form can be found on your Goldbook© CD- Form PP-1.