Hi, I'm wondering if someone could tell me which is the standard way to calculate the final month's rent.
I agreed that the tenant could move out early and would pay the final month pro-rata but am coming up with different figures depending on how I calculate it:
Tenant moved in on 16th of the month and is now moving out on 3rd June. I calcuated the daily rent to be £26.63. (Monthly rent 810 x 12 / 365)but how do I calcuate the final sum?
1) Tenant is staying an extra 19 days up to the 3rd June so daily rate x 19 = £505.97.
OR
2) Tenant is moving out 12 days early, so 12 x 26.63 = 319.56. 810-319.56 = £490.44.
I automatically calculated it using the first method and then recalcuated using the second. There's quite a big difference in the two amounts and I'll probably charge the lesser rate if I can't get clarification but I was hoping someone could tell me if there was a standard way of doing it.
Thanks very much.
I agreed that the tenant could move out early and would pay the final month pro-rata but am coming up with different figures depending on how I calculate it:
Tenant moved in on 16th of the month and is now moving out on 3rd June. I calcuated the daily rent to be £26.63. (Monthly rent 810 x 12 / 365)but how do I calcuate the final sum?
1) Tenant is staying an extra 19 days up to the 3rd June so daily rate x 19 = £505.97.
OR
2) Tenant is moving out 12 days early, so 12 x 26.63 = 319.56. 810-319.56 = £490.44.
I automatically calculated it using the first method and then recalcuated using the second. There's quite a big difference in the two amounts and I'll probably charge the lesser rate if I can't get clarification but I was hoping someone could tell me if there was a standard way of doing it.
Thanks very much.