I have 2 tenants on a periodic tenancy. The payment date is 15th of the month and the last payment was made on Feb 15th (so payment received to cover up to 14th March). One tenant has given notice and therefore the end date of the agreement for both tenants will be 20th March.
How do I calculate how much additional rent for the period is due ( 15th - 20th March)
if for example the rent was £1000, should the additional rent be calculated as follows:
£1000 divide by 31 ( number of days on March) multiplied by 6 ( 15-20th March)
So £32.26 x 6 =£193.55
Or do I calculate based on annual rent divided by 365 and multiplied by 6?
Am I correct in assuming the charge for the extra 6 days should be made on 15th?
Thanks
£1000 x 12 = 12000
12000 ÷ 365 = £32.87/day
The additional 6 days would be from 15th - 20th
Thanks very much, really appreciated.
The Housing Act 1988 Section 21C specifies that a daily rate should be calculated with the formula;
R x D/P
where—
R is the rent paid for the final period;
D is the number of whole days of the final period for which the tenant was not in occupation of the dwelling-house; and
P is the number of whole days in that period.
However this should not be confused with Tenant Fees Act 2019 which only pertains to calculating permitted fees (such as a holding deposit). In particular the formula holding deposit is;
Weekly rent = (monthly rent x 12)/52
So the correct way to calculate it would be;
R (£1000) x D(6 days 15/03/25 - 20/03/25) / P (31 days 15/03/25 - 14/04/25)
This comes to a total of £193.54 still outstanding.