OpenRent Community

Calculating Rent for Additional days

My tenant’s 1 year tenancy is completing on the 14th of January.
Tenant paid his last rent on the 15th of December which will take them upto 14th of January.

He will be moving out only on the 20th of January. That means he will be staying an additional 6 days more.

How do I calculate the rent for the remaining days?
He is paying £750 every 15th to 14th.
So, should I calculate the rent for the remaining 6 days like

Divide total rent of 750 by 30 days and multiply by 6 days or
Divide total rent of 750 by 31 days and multiply by 6 days

Or multiply £750 x 12 months and divide by 365 days to get daily rate then multiply by 6 (days).

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It depends how nice you want to be. The legal position is that if he stays beyond the end of the fixed term, a periodic tenancy will arise and he is obliged to serve notice to end it. The notice has to be a minimum of one month expiring at the end of a tenancy period. In your case, the earliest he can serve the notice legally is 16 January to end the tenancy on 14 March. Rent would be due in full.

Rent is due in whole periods and unless you are serving a s21 notice, there is no requirement on a landlord to calculate on a daily basis as the full month would be due.

This has only happened to me twice and on both occasions I have ignored the fact that they are bound by a tenancy and just calculated the daily rate and charged them that. This was because they were good tenants, there was no damage and they didn’t owe me any rent. Up to you how you play it.

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Thanks @Mr_T and @David122.

My tenants are good tenants. So, I will go on a daily rate.

I think (£750 x 12)/365 and then multiply by 6 makes sense.
That will avoid any confusion.

Thanks very much

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Yes I have calculated that way
(Rent per month x12 ) divide by 365 and then multiply by number of days

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The correct method to calculate daily rent has now been prescribed in the Tenant Fees Act and is as has been described above.

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This is a charter to let tenants mess you about, anyway if it goes to adjudication they will rule to only charge the days they stayed over andnot the whole month, this cost me 6 weeks void period,lost around £1,000 twating goverment.

What about leap years? Just throwing an (certainly no new) idea out there from someone who has a maths degree and is into astronomy:

(weekly rent)/7 x 365.25 /12 = monthly rent
or, (monthly rent) x12 /365.25 x7 = weekly rent and then (weekly rent) /7 = daily rent

Hi George, we have a guide on this here:

Sam

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Hi,
If the tenancy expires on the 20th of January and tenant is moving out only on the 10th of February, then how do I calculate the additional rent for the days tenant lived in the property?

As per the above guide I have to divide the whole rent which is £750 by 31 days (because January has 31 days) and then multiply by 20 (number of stayed upto the 10th of February).

That means the calculation will be (750/31)*20.

Do we need to follow this by law?

It makes more sense if the calculation is monthly rent 12 and divide by 365 which is
((750
12)/365)*20.

Thanks

The Tenant Fees Act 2019 Schedule 1(2)(4)©:

©“one week’s rent” means the amount of the annual rent payable in respect of the tenancy immediately after its grant, renewal or continuance divided by 52.

This is how you would need to calculate holding and security deposits so I would suggest it is safe to assume that a court would accept it as a method for calculating daily rent for the purposes of rebate.

Hi @george123 and @David122,

Do look at the guide I linked to, because the Housing Act spells out how rent must be calculated in the scenario George is describing. The Tenant Fees Act sets out a different calculation for weekly rent, which David summarises above.

But for George’s situation, the Housing Act formula must be used, not the TFA formula.

(Very confusing stuff as usual!)

Sam

So, is it the way I should calculate the rent for the additional days?

Many thanks

Hi Sam. Do you mean the method of calculation set out in S21c of the Housing Act 1988? I had forgotten about that section, which is a relatively recent and controversial addition. You are right that it shows a different method of calculating the daily rent, however, its application is only legally required in situations where the landlord has served a s21 notice on the tenant, and there is even some doubt about whether it is enforceable in these situations. However, I agree that its an alternative and valid way of calculating the refund.

As you are not legally obliged to refund any rent, you have a choice about which method you use and the tenant will not be able to formally complain.

Thanks @David122
I will choose the method I mentioned above.