Hi,
So you stand to gain more profit/monies by charging your tenants per week rather than per month due to some months have more weeks.
My tenants are moving in tomorrow, it’s a 6 month contract and the openrent contract states the rent is payable monthly on the 25t of each month
Is this something I should change when it turns into a rolling contract? Ask them to sign a new contract and state it’s now payable weeky?
Thanks
NO! There is only 1 day difference in most months and we will look a bit ridiculous if we charge more for months with 31 days rather than 30 days. It all averages out over the term of a tenancy.
If you think you are losing out why don’t you increase the monthly rent to what you think it should be?
Yeah I was receiving pressure from a partner to change it but it’s a silly idea, if I wanted the extra i’d raise the monthly bill…
Ty all,
I don’t understand this at all. £1000 per month if expressed as a weekly rent is £230.77. The annual rent is the same in both cases. Are you saying that you can increase the rent if you have it weekly, (eg saying its £250 a week)? Yes, of course any landlord can try to hoodwink their tenant in this way, but otherwise the rent is the rent is the rent, regardless of the frequency of collection.
Lets say the rent is 1000 per month, that is £12000 a year
2020 had 53 weeks - so 53 x £230.77 weekly rent is 12230.81 (which i suppose is 1019.23416667 a month)
2021 will have 52 weeks, so 52 x 230.77 is £12000.04
I’m not going to change it, I’ll keep it monthly but people do charge weekly for properties for that extra week.
rayo 5 i have never been good at maths. BUT I have lived for 72 years and never seen a year with 53 weeks it. 53 x 7 days is 371 days. !! There are 365.24 days in a year . tho it is different on the moon and Mars
A year has 365 days or 366 days on a leap year every 4 years. 2020 had 52 weeks and 2 days so a weekly rent would generate slightly higher rent. 230x2/7 = £65 a year extra. Most years difference would be £32.50 as they are 52 weeks and 1 day. Not really worth the hassle and tenants are used to monthly so would be hard to explain…
The calculation for weekly rent is prescribed in the Tenant Fees Act 2019 as ‘annual rent divided by 52’. In Richard19s example, the extra 2 days in 2020 would be paid either at the beginning or end of that week if the rent were collected weekly. If its collected monthly, then those two days would be collected either at the beginning or end of that month. Either way its collected and is not extra.
Ah that’s super handy! Anyway who tells me “Why didn’t you ask for weekly” I’ll tell them to refer to that act
Thanks all, much appreciated!
Just to clarify I won’t be asking my tenants to change to weekly or upping their rent haha
Cant believe you want to.
more checking the bank for an extra fiver or so a month.
There is one point here which hasn’t been covered and that is if the tenant would like to change for personal or financial reasons. There could be many of which I will not list.
One of my long term tenants was moving and requested in the last 3 months be paid weekly to which I agreed providing it was via the normal bank transfer ( I didn’t want to get into rent books issues) .
Anyway although you’re not changing to weekly now, there may be times ahead when it has to be considered.
Paying 1/4 the monthly amount creates a 13 month calendar. This is a trick for paying debt off faster.
So if the way you work it out is 1000/4=250, then 52*250= 13,000
However when you calculate weekly rent you can’t do it like that. You have to calculate annual (1000*12=12,000) by 52 weeks (12,000/52= 230) in which case the difference of a week either way is negligeble with a lot of potential extra headache for you.
I understand where you’re getting this idea but no. You don’t get to charge weekly as a way to sneakily raise the rent by 8%
I believe he was thinking about the method of dividing the month by 4 instead of the annual by 52.
That would increase rental income by 8%. Which is why it is not longer legal, it’s an underhanded way to screw people over.
We are not screwing peiple over Ryan.
You dont have a mortgage to pay upgrades to make every time the gov moves the goalposts. Checks to pay for insurance rent to cover damage to repair and just general maintainance to pay for. Tenants pay their rent job done. Look at both sides Ryan before you judge… the money is hard earned to purchase with more jobs than we want but only hard work and scrimping has got us here.
If a tenant wants to change to weekly payment and the landlord agrees, its not a problem, but the fact should ideally be recorded and signed by both parties with dates. The rent, as has been said will be the annual rent divided by 52. I think that there is still an old legislative requirement for the landlord to use a rent-book for weekly rents even if they pay by standing order.
Please reread my post.
Increasing the rent by 8% by hiding it would, indeed, be screwing people over which is why, as was pointed out earlier, it is illegal to do so.
Calculating a fair rent based on annual/52 weeks is not screwing people over.
Calculating an unfair rent by creating a 13th month is.
Ok I must have lost the plot. Originally it said a weekly rent which over 52 weeks is the same
The only time 13 months can be involved is in payroll because it goes into a 13th month. How rent can suddenly produce a 13 th month is beyond me. Even at a weekly level or a quarterly level you cannot charge more than the weekly rate advertised. Even so it cant happen so is a non tipic.
Its not “illegal” to increase the rent this way if its what both parties agree to, but I agree that both parties should be aware that this is whats happening.
I think this topic has been done to death hasn’t it. All that really needs to be said is:
Collected weekly or monthly, if the calculation is done correctly, the rent will be the same.
I agree with Richard19. Your rent should be calculated and set based on 52 weeks per year but collected pcm. That way it is irrelevant how many days there are in each month as this would then take into account any perceived shortfall between 1 and 4 day (e.g. Feb & March) difference between months. Moving from an AST to ‘periodic’ would also make no difference.