Rent Payment Plan Letter

This letter is a document that can be used by landlords to create a payment plan to assist tenants who are currently unable to pay their full rent as they previously agreed. By using this document, the new rent arrangement is documented in writing, preventing misunderstandings, miscommunication, and future disputes over the rent amount due.

In an ideal world, tenants would always be able to pay the rent that they agreed to in their initial rent agreement with their landlord. However, sometimes due to unfortunate circumstances beyond their control, tenants may find themselves unable to pay. Evicting a tenant for nonpayment of rent and finding a replacement can be a hassle for many landlords. So, rather than letting a tenant's rental payments lapse while they wait to engage in the long and arduous eviction process, a landlord may choose to create a payment plan with the tenant instead. This works to preserve the landlord/tenant relationship and ensures that the landlord will get some sort of payments from the tenant going forward. This letter is used to create a temporary payment plan for tenants.

This letter allows the landlord to temporarily change the amount of rent the tenant is required to pay. If the landlord wishes to permanently decrease the rent the tenant must pay according to the rent agreement, they should use a Change of Rent Notice letter.

How to use this document

This letter has all of the information necessary for a landlord to inform their tenant about a temporary rent payment plan. The letter outlines clearly how the rent payment plan will work and how deferred rent, if any, will be repaid by the tenant once the regular rent payments eventually resume. The letter details whether rent payments will be discounted, deferred to be paid later, or suspended altogether. The letter also has dates for when the plan will start and, if known, end. It also explains how, if applicable, deferred rent will be paid, whether through a lump sum payment or multiple installment payments, and when the repayment will be due. The landlord may also specify if the tenant will be charged interest on the deferred rent payment amount.

Once this letter is completed with all of the necessary information, the landlord should print and sign the letter and then send to the tenant via certified mail. By sending with certified mail, the landlord will have documentation of when the letter was sent and subsequently received. The tenant should sign the letter if they agree to its terms, make a copy of the letter for their own records, and return the original to the landlord. By keeping the letter, the landlord and tenant will both be able to refer to the payment plan and how it is supposed to work in case of any future disputes.

Applicable law

There are no specific laws applicable to a landlord choosing to discount, defer, or suspend their tenant's rent payments. However, there may be specific lease terms in the original rental agreement signed by the tenant that govern and inform such a request.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.