It seems the OpenRent AST is a quite generous on this with the following clause:
“To pay interest at 3% above the Bank of England base rate upon any Rent in arrears or other monies due under this agreement for more than 14 days calculated from the date upon which it became due to the date of payment.”
Does that mean a tenant can pay late by 14 days with no consequence?
3% seems very low too, that’s about 4p per day for a room! Not really compensatory for the worry of potentially not receiving rent.
And it might seem low but you’re not supposed to make lots of money on late rent. It’s not there to make you rich or penalise the tenant. It’s there to make you whole.
Have you asked the tenant why its happening? Could it be that their salary is paid after the rent due date? Most landlords would informally accept late rent in these circumstances.
No intention to make lots of money from this, but simply a deterrent for the tenant. As it is, tenants can completely milk this with such insignificant consequence.
I have the same problem with one of my tenants. I have come to realise that her life seems pretty chaotic, however, she loses a job and then finds another within a few days. She is a single Mum and really does seem to try her best. She is someone who things always seem to go wrong, whatever she does.
As for the late rent every month, her pay dates keep changing and this interferes with her ability to pay. My philosophy is that as long as I get paid each month, I am not out of pocket.