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A past due rent payment plan agreement is established between a tenant and a landlord for tenants who are behind on rent due to circumstances like layoffs or medical emergencies. This approach can be more beneficial for landlords compared to eviction, which can be costly. Payment plans may also arise post-eviction if a judge orders a former tenant to pay back rent. For instance, if a tenant owes $800 for one month’s rent, the landlord and tenant might agree to repay that amount over four months, resulting in monthly payments. This arrangement helps manage missed payments and can provide a resolution for both parties.
