Sorry, long-ish post as a first post, hopefully there is a short (and sensible :) ) answer for someone to give?
* BACKGROUND
Tenant was due to move in today and was to pay a month's rent in advance. Couldn't move in, so will move in tomorrow.
That's ok, I was to apportion the rent fairly, so that the new tenant paid one day less for February (moving in on the 2nd now, not the 1st) and then future rents are payable on the 1st of each month.
In the past I've always tended to apportion the rent by taking the monthly rent, dividing by 365 (366 in a leap year), then multiplying the end result to calculate a prorata rent.
Always been fine, until now.
* QUERY
I'd welcome comments as to how to consistently and correctly apportion / prorata a rent please!
Query arises as the new tenant will be paying £750pcm, the daily rate equates to £24.66 (£750 x 12 / 365),
but when dealing with the rent due for the 27 days for February the total sum due comes to £665.75, which means £84.25 short for the month, rather than £24.66
Is the correct approach here to deduct the £24.66 from the £750, rather than times the £24.66 by 27?
i.e. a deduction of £24.66 from the £750.00 will result in £725.34 due for the 27 days
I fully appreciate that some prorata rents on the days in a month, so the daily rate will change dependent on whether there are 28, 30 or 31 days in a month (or 29 days in February leap year)
Also fully appreciate that we're not talking huge sums of money, but it needs to be 'correct'.
BUT, sorry, the late hour is confusing me!
So, do I
- stick with the daily rate of (Monthly rent x 12 / 365),
- then add, or deduct the amount, which is it?
- or, instead, use (Monthly rent / days in that month)?
* APPORTIONMENT ACT 1870
I've seen very helpful posts from a forum member called jeffrey, where he states that all rent apportionment is on an annual basis (irrespective of length of term), unless Lease/ Tenancy Agreement says otherwise - and refers to the Apportionment Act 1870.
Is that still how it is done - or, is simply better to have the tenancy agreement state otherwise...
SERIOUS QUESTION
It's not about short changing Landlord, or Tenant - I just need to consistently and correctly apportion the rent. Anyone out willing to offer the 'correct' answer please?
Or is it simply down to what is most commercially advantageous to a landlord?
And if you got this far, many thanks!
* BACKGROUND
Tenant was due to move in today and was to pay a month's rent in advance. Couldn't move in, so will move in tomorrow.
That's ok, I was to apportion the rent fairly, so that the new tenant paid one day less for February (moving in on the 2nd now, not the 1st) and then future rents are payable on the 1st of each month.
In the past I've always tended to apportion the rent by taking the monthly rent, dividing by 365 (366 in a leap year), then multiplying the end result to calculate a prorata rent.
Always been fine, until now.
* QUERY
I'd welcome comments as to how to consistently and correctly apportion / prorata a rent please!
Query arises as the new tenant will be paying £750pcm, the daily rate equates to £24.66 (£750 x 12 / 365),
but when dealing with the rent due for the 27 days for February the total sum due comes to £665.75, which means £84.25 short for the month, rather than £24.66
Is the correct approach here to deduct the £24.66 from the £750, rather than times the £24.66 by 27?
i.e. a deduction of £24.66 from the £750.00 will result in £725.34 due for the 27 days
I fully appreciate that some prorata rents on the days in a month, so the daily rate will change dependent on whether there are 28, 30 or 31 days in a month (or 29 days in February leap year)
Also fully appreciate that we're not talking huge sums of money, but it needs to be 'correct'.
BUT, sorry, the late hour is confusing me!
So, do I
- stick with the daily rate of (Monthly rent x 12 / 365),
- then add, or deduct the amount, which is it?
- or, instead, use (Monthly rent / days in that month)?
* APPORTIONMENT ACT 1870
I've seen very helpful posts from a forum member called jeffrey, where he states that all rent apportionment is on an annual basis (irrespective of length of term), unless Lease/ Tenancy Agreement says otherwise - and refers to the Apportionment Act 1870.
Is that still how it is done - or, is simply better to have the tenancy agreement state otherwise...
SERIOUS QUESTION
It's not about short changing Landlord, or Tenant - I just need to consistently and correctly apportion the rent. Anyone out willing to offer the 'correct' answer please?
Or is it simply down to what is most commercially advantageous to a landlord?
And if you got this far, many thanks!