How to calculate final rent of periodic tenancy

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    How to calculate final rent of periodic tenancy

    Original contract signed on 27/10/15 with minimum a month notice, expiring on the last day of the period. Rent increase agreed on 28/11/17. I found new tenants to move in on 9/3/19.

    On 8/2/19 tenants noticed me of moving out on 9/3/19. On 27/2 they paid me rent calculated from monthly rent*12/365*11days. I can't find anywhere in the contract how to proportionate rent except in fire events, where it says fair proportionment. It doesn't mention 360 or 365 days at all, or just monthly/30*no. of days. But my understanding of the contract is monthly rent is unchanged as notice expires on the last day of the period.

    Can someone help to shed a light please? Thank you.

    #2
    None of that makes sense, because the end of the rental period sounds like the 26th of the month.
    If the contract is periodic, the tenant's notice isn't valid (unless you've agreed that it is).

    The rent is due when the tenancy agreement says it is, and, unless it says it can be part paid or refunded, it can't be part paid or refunded, unless you agree.

    So, you're all in a bit of a mess and there isn't really a right answer about how you get out of it.
    You need a resolution you're all OK with.
    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


      #3
      Why quibble over peanuts?

      Wait and see if they actually leave by notice and what if any damages there are.

      Hope you've not signed contract with new tenants
      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


        #4
        Yes, it's periodic contract now, the rental period ends on 26th of each month. Why is tenant's notice not relevant?

        I've agreed they move out on 9/3. In that case, should the rent be due up to 9/3 only or for the whole month?

        I hope they are good tenants so won't damage the house before they leave. It's just misunderstanding on how much is due for the last month.

        Comment


          #5
          If you've agreed the tenancy can end on 9 March then that's when the rent stops too, unless you agreed otherwise. They were obliged to pay rent until 26 March but by agreeing to end the tenancy early without penalty you have forgone the additional rent.

          Comment


            #6
            Go ahead and argue with your existing tenant so they don't end up moving out as scheduled, so the new tenant can't move in and ends up suing you for breach of contract.
            I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

            I do not answer questions through private messages which should be posted publicly on the forum.

            Comment


              #7
              The rent the tenant has calculated and proposed is fine. If you all agree there isn't a problem! The notice would normally be given to end the last day of the period and so would not need proportioning.

              Comment


                #8
                Originally posted by ddq View Post
                Yes, it's periodic contract now, the rental period ends on 26th of each month. Why is tenant's notice not relevant?

                I've agreed they move out on 9/3. In that case, should the rent be due up to 9/3 only or for the whole month?
                It's not a question of relavancy, it's a question of validity.
                When the tenancy became periodic, the tenant's notice was (almost certainly) changed by the legislation that creates a periodic tenancy.
                The tenant's notice has to be a minimum of a month, ending at the end of a rental period.

                If you have agreed otherwise, the notice is valid.

                From a property rental point of view, the liability for rent ends at the end of the lease.
                From a contractual point of view, if the tenancy agreement says that rent of £x is to be paid monthly in advance on the 27th of each month, it has to be paid in full in advance on that date.
                If there's nothing in the agreement about refunding some of it, whether any of it it has to be refunded is open to debate.

                Hence the legislation about when notice can expire.
                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
                  Let me try to make sure I understand your advice fully.

                  By the legislation for periodic tenancy, the tenant's notice has to be a minimum of a month, ending at the end of a rental period. Hence they have to pay full rent on 27/2.

                  The fact I agreed for them to move out on 9/3 changed everything to deem that I can demand rent to 9/3 only?

                  In fact, I thought letting them move out early (without agreeing that they have to pay to 9/3 only) will save them bills and give me a chance to find matching tenants. I found matching tenants just by luck, and I didn't realize it put me in a bad position to request full rent.

                  Comment


                    #10
                    Perhaps a course in landlording from RLA or NLA?

                    Yes, you've agreed their notice and (unless you have written agreement otherwise) they only owe rent to 9/3. As said before, wait & see
                    - a) IF they leave &
                    - b) what damage is any...
                    then you can work out if you wish to demand anything ££££
                    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


                      #11
                      Originally posted by ddq View Post
                      By the legislation for periodic tenancy, the tenant's notice has to be a minimum of a month, ending at the end of a rental period. Hence they have to pay full rent on 27/2.

                      The fact I agreed for them to move out on 9/3 changed everything to deem that I can demand rent to 9/3 only?

                      In fact, I thought letting them move out early (without agreeing that they have to pay to 9/3 only) will save them bills and give me a chance to find matching tenants. I found matching tenants just by luck, and I didn't realize it put me in a bad position to request full rent.
                      Yes, that's pretty much spot on.

                      The only remaining grey area is that the rent is due up to the 9th March, but the tenancy agreement requires payment of a month's rent on the 27th of each month, because it wasn't designed to cover this situation. But your solution of a part payment is sensible and is only an issue if you and the tenant can't agree the appropriate amount.
                      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


                        #12
                        Just to update. I did as I thought was right. The tenants disputed and I won it. I filed all evidents working on reletting and it's far more than the amount I deducted from them.

                        Comment


                          #13
                          You haven't said what you did and I don't understand your second sentence, but are you saying that you forced the tenants to pay rent for a period that they no longer had a tenancy and that you weren't entirely honest with the deposit scheme so that they awarded you funds you weren't entitled to?

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