Pro Rated Overpayment

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    Pro Rated Overpayment

    Hi all,

    I will be moving into a place I'm renting with an agency on Friday. Since the agent takes payment on the first day of the month, I have to pay a pro-rated amount for 27, 28. 29, & 30. The rent PCM is £1,500.

    My maths shows that this should be 4/30*1500 = £200. However, the agent has provided the pro-rated value for me of 1500/28*4 = £214, which is £14 more but I can't see why the agent is using 28 days (or exactly 4 weeks) as opposed to the number of days in the calendar month.

    I have asked my agent and have been told this is an industry standard and that my calculation does not apply as there is not 30 days in each month (but there isn't 4 weeks in each month either and finding the daily rate by dividing by the days in the year works out to be £197) and have basically been told if I have a problem with a value, they can cancel the agreement (I desperately need this place).

    I understand the difference is only £14 but I would not be allowed to pay £14 less than normal and it is a matter of principle.

    Thanks for any help!

    #2
    What does the TENANCY AGREEMENT state about when rent is due and start & end date of tenancy.: That's where to start.

    £1500 pcm is £18k pa which divided by 365 (days in year) times 4 (extra days) make £197:26. Gosh, how odd, an agent unable to do sums.

    The expression is "pro rata" - from the Latin..
    https://en.wikipedia.org/wiki/Pro_rata
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Rent is due first of the month. It doesn't go into any details about how pro-rated rent is calculated, only that a portion of the monthly rent needs to be paid and that they will calculate it for me so that there is no doubt.

      Comment


        #4
        Originally posted by bobby276 View Post
        .................. It doesn't go into any details about how pro-rated rent is calculated, only that a portion of the monthly rent needs to be paid ...................
        Please quote EXACT wording of this clause in tenancy agreement ..

        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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          #5
          "you will pay a proportion of the rent to cover that month"
          "We will tell you how much you need to pay so that there is no doubt."

          Edit: Here is a definition for 'Month' in the agreement

          Month - One 'calendar' month (for example, January, February and so
          on), not just four weeks

          Comment


            #6
            Thanks problem they have with
            "you will pay a proportion of the rent to cover that month"
            "We will tell you how much you need to pay so that there is no doubt."
            In that clause, "proportion" is fair, but "we will tell you how much" is clearly "unfair": If they decided 4 days was £1,000 - as the clause permits - no judge would allow that.

            Suggest you point agent at this thread & offer £197:26: But do all you can not to fall out with agent/landlord: For a whole host of reasons...

            The calendar month clearly leads to 365 days a year etc etc etc

            Artful: Landlord since 2000
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

            Comment


              #7
              Thanks for your help, I'll keep this post updated

              Comment


                #8
                There's no such thing as an industry-standard calculation (and I don't agree with your calculation either).
                But it is identical to the one the government uses to calculate a rebate in a part month at the end of a tenancy.

                So your calculation is correct, but you're going to have to pay the £14 anyway to get the property.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  What stops me from paying and then claiming it back later saying it violates the terms of the contract?

                  Comment


                    #10
                    Originally posted by bobby276 View Post
                    What stops me from paying and then claiming it back later saying it violates the terms of the contract?
                    Nothing, but I think you'd be wasting your time for £14 and the court would probably split any costs, so you'd be out of pocket.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment


                      #11
                      Fair enough - in which case, I'll leave it alone. Thanks for the advice.

                      Comment

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