Rent Calculation Question

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    Rent Calculation Question

    Hi

    I need some advice.

    I have a tenant arguing over the final payment of rent. They were in for 11 months 20 days and as such I have charged them 11 months rent and then worked out 20 days for the final instalment on a "per diem" daily basis.

    They have come back disputing this amount claiming the rent should have been calculated "per diem" or daily for the 354 days they were in the property, which is less then the figure I am charging.

    Does anyone know if in English Law there is a correct way to calculate rent.

    Many thanks

    #2
    well try this on them :

    Rent is payable per calender month as stated in ast ....(assume yours does)
    so we will make the whole calculation alot easier ...as you entered the 12th month the sum payable will be 12 x monthly rent ........pls send payment by return !!!!!!!!!!!


    And see what happens !

    The Rodent
    A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.
    W.Churchill

    Comment


      #3
      Originally posted by Hi-fi View Post
      I have a tenant arguing over the final payment of rent. They were in for 11 months 20 days and as such I have charged them 11 months rent and then worked out 20 days for the final instalment on a "per diem" daily basis.

      They have come back disputing this amount claiming the rent should have been calculated "per diem" or daily for the 354 days they were in the property, which is less then the figure I am charging.

      Does anyone know if in English Law there is a correct way to calculate rent.
      The correct way to calculate the 20 days' rent would be on a daily basis, where the daily rent is (monthly rent * 12/365.33). There's certainly no justification at all to suddenly calculate it based on the whole year. When you rent on a monthly basis there's no expectation that the amount payable will vary from month to month depending on how many days are in the months, and in effect that's what your tenant is proposing you do.

      How many pence are you arguing about, by the way?

      Comment


        #4
        Originally posted by Hi-fi View Post
        Hi

        I need some advice.

        I have a tenant arguing over the final payment of rent. They were in for 11 months 20 days and as such I have charged them 11 months rent and then worked out 20 days for the final instalment on a "per diem" daily basis.

        They have come back disputing this amount claiming the rent should have been calculated "per diem" or daily for the 354 days they were in the property, which is less then the figure I am charging.

        Does anyone know if in English Law there is a correct way to calculate rent.

        Many thanks
        Why did they leave the property after 11 months and 20 days? Why not the full twelve months? Was that at your request, or theirs?
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

        Comment


          #5
          Originally posted by Hi-fi View Post
          Hi

          I need some advice.

          I have a tenant arguing over the final payment of rent. They were in for 11 months 20 days and as such I have charged them 11 months rent and then worked out 20 days for the final instalment on a "per diem" daily basis.

          They have come back disputing this amount claiming the rent should have been calculated "per diem" or daily for the 354 days they were in the property, which is less then the figure I am charging.

          Does anyone know if in English Law there is a correct way to calculate rent.

          Many thanks
          If the contract is for 1 year, that is the total amount of rent payable - it is just divided into 12 manageble portions.
          Therefore, in my view, your tenant's last rent amount is simply;

          annual rent divided by 365 multiplied by 20.

          Comment


            #6
            Originally posted by mind the gap View Post
            Why did they leave the property after 11 months and 20 days? Why not the full twelve months? Was that at your request, or theirs?
            "Your request or theirs" is surely the important question.
            Normally you would expect the tenant to leave on and certainly pay to the end-day of a period of the tenancy. So, you would expect payment for the full month even if they left on the 20th.
            If the request to leave early was theirs and you agreed to them leaving partway through the month and paying pro-rata, then that's fine. However in those circumstances the tenant would be mean to quibble about the daily rate.
            I calculate that on a rent of £600 pcm the daily rate is 7200/365 = £19.72. If you calculate for a 31-day month the daily rate is 600/31 = £19.35. The largest difference you could be arguing about is 37p per day or £7.40 for the 20 days.

            Comment


              #7
              Originally posted by johnjw View Post
              I calculate that on a rent of £600 pcm the daily rate is 7200/365 = £19.72. If you calculate for a 31-day month the daily rate is 600/31 = £19.35. The largest difference you could be arguing about is 37p per day or £7.40 for the 20 days.
              But that £7.40 would feed a hungry pet cat for 16.75 days, by my reckoning.
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

              Comment


                #8
                Either way, all rent apportionment is on an annual basis (irrespective of length of term), unless Lease/ Tenancy Agreement says otherwise.
                See re Apportionment Act 1870: http://www.landlordzone.co.uk/forums...ad.php?t=13593, post #8.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Originally posted by mind the gap View Post
                  Why did they leave the property after 11 months and 20 days? Why not the full twelve months? Was that at your request, or theirs?
                  Why could the contract not have been made for 11 months and 20 days?

                  I would work out the annual rent and divide it by 366 being a leap year and then multiply it by the 20 days. However if you want to do 355.66 then I'm sure no one will really mind!

                  Kind regardsm

                  John

                  Comment

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