My tenant is finally moving out this afternoon, fingers crossed! Thinking about the return of the deposit which is registered with the TDS, I have a question which I hope you can help me with.
There is a clause in the rental agreement which says:
"The tenant hereby covenants to pay to the landlord on demand all reasonable legal solicitors and other costs and disbursements where appropriate incurred by the landlord in enforcing or attempting to enforce the provisions of the Agreement recovering unpaid rent or other monies payable under this Agreement or recovering possession of the property for any reason whatsoever or any other action arising out of any breach, non-performance or non-observance by the tenant of the provisions of this Agreement together with interest to be calculated on a day-to-day basis at the rate of 4% above the base rate of Natwest Bank PLC from time to time upon any rent and other monies or payment due to the Landlord pursuant to the terms hereof and unpaid for a period of 7 days or more"
My tenant was due to pay a months rent on the 28th March and then again on the 28th April. Neither payments were made. The tenant started claiming housing benefit and the council paid me most of the unpaid rent.
My question is this: According to the clause above, how do I work out the amount of interest that would be due to me? The rental amount was £1000 per month, so am I right in saying that I can claim 4% on the amount from 4th April (7 days after the rent was due) to the 28th April ie 24 days which I calculate to be £960? Then how do I calculate the amount for the 2nd months arrears? Is that on another £1000 or £2000?
Sorry if the above sounds confusing but I don't want to make a mistake and have problems later.
Thank you.
There is a clause in the rental agreement which says:
"The tenant hereby covenants to pay to the landlord on demand all reasonable legal solicitors and other costs and disbursements where appropriate incurred by the landlord in enforcing or attempting to enforce the provisions of the Agreement recovering unpaid rent or other monies payable under this Agreement or recovering possession of the property for any reason whatsoever or any other action arising out of any breach, non-performance or non-observance by the tenant of the provisions of this Agreement together with interest to be calculated on a day-to-day basis at the rate of 4% above the base rate of Natwest Bank PLC from time to time upon any rent and other monies or payment due to the Landlord pursuant to the terms hereof and unpaid for a period of 7 days or more"
My tenant was due to pay a months rent on the 28th March and then again on the 28th April. Neither payments were made. The tenant started claiming housing benefit and the council paid me most of the unpaid rent.
My question is this: According to the clause above, how do I work out the amount of interest that would be due to me? The rental amount was £1000 per month, so am I right in saying that I can claim 4% on the amount from 4th April (7 days after the rent was due) to the 28th April ie 24 days which I calculate to be £960? Then how do I calculate the amount for the 2nd months arrears? Is that on another £1000 or £2000?
Sorry if the above sounds confusing but I don't want to make a mistake and have problems later.
Thank you.