PDA

View Full Version : 24 days rent owing on a short month



lollyhouse
26-02-2007, 08:43 AM
Our tenants have finally left the property, but as yet have not handed over keys etc or paid rent that was due for the days they had occupation of February. Is there a fair way of working out rent owing on a short month. The rent is supposed to be paid monthly on the first of each month in advance at a rent of £700. They say that as they left the property on Saturday (not until 7.30pm but didn't speak to us until 10.00 that night), they will only pay until then. I would put those 24 days at £600 but the council (who placed the tenants with us) have worked out an amount owing as £552.33. The tenant is disputing both these amounts and is not willing to pay extra days from Saturday. Its now monday morning, I have tried calling the council and have had no communication since Saturday night with our tenant. Given all the hassle we've had off actally getting them to leave, I'm wondering on how to play it now with the unpaid rent - What is a fair way of working out rent owing on a short month, what is legally right for days owing if the tenant left property but hasn't done any handover yet - When we spoke to him late Saturday night he wanted me to go there and then to get keys etc - but it was too late in my eyes, he was supposed to have left property at 12.00 midday, so I told him to call me today to sort t out properly and professionally.

Hope this all makes sense.

P.Pilcher
26-02-2007, 09:03 AM
Much to my suprise, the council is correct - or at least their method of working things out agrees with mine!

If you work out the rent on a daily basis, you get monthly rent £700, so annual rent is 700 x 12 = 8400. Now divide by 365 to get daily rent = £23.01369863. Thus 24 days owed gives us 23.01369863 x 24 = £552.3287671 which the council has correctly rounded up to £552.33.
Wonders will never cease!

P.P.

lollyhouse
26-02-2007, 09:08 AM
Thanks P.P. - Do you think its worth pushing for these two extra nights as he didnt do any hand-over at the agreed time on Saturday? As we haven't got to go down the court/eviction process as we had imagined we would, I feel ready to let that go and just get the 24 days paid to me today and be done with it all.

P.Pilcher
26-02-2007, 09:16 AM
Well, it's your call. Technically I suppose he owes you rent until he hands the keys over, but you will probably do best to cut your losses and be thankful if you get your 24 days. If he continues to argue about the council's (and my) calculation you can always threaten to charge him the extra unless he coughs up immediately.

P.P.

Furat
26-02-2007, 10:33 AM
charge him for the complete total, then deduct two days as a gesture of goodwill.


That way he's on the back foot, because he left late, and didn't bother to get things done properly.

lollyhouse
26-02-2007, 11:56 AM
Thanks for your help. I have worded the receipt for payment as

Withheld rental monies due for 26 days of February £598.36
2 days deducted as goodwill to tenant £ 46.03

Total due for outstanding rental monies £522.33

Surrey
26-02-2007, 13:20 PM
Make the deduction time-bound, i.e. the offer to deduct the money will be withdrawn if the outstanding balance is not paid with 14 days.

Ericthelobster
26-02-2007, 17:15 PM
If you work out the rent on a daily basis, you get monthly rent £700, so annual rent is 700 x 12 = 8400. Now divide by 365 to get daily rent = £23.01369863. Thus 24 days owed gives us 23.01369863 x 24 = £552.3287671 which the council has correctly rounded up to £552.33.
Alternatively(!):

Monthly rent = £700
Rebate due for 24-28 Feb: 4 days at £23.01 = £92.04
Therefore rent due for February = £607.96!

I don't know whether one method is 'legally' the correct one, but I'd be interested to know as I've been in similar situations myself before. I've tended to work it out in the tenant's favour without being sure. It doesn't usually make a huge difference; obviously in February the effect is biggest!