| Rental period confusion | | | | wishing to be viewed as money grabbing property |
| One of the most confusing aspects of letting out | | | | owning capitalists they together with some letting |
| a property is calculating the final rent payment. | | | | agents adopt a different system to generate |
| What on the face of it seems a pretty straight | | | | residual rent amounts. This namely involves |
| forward matter is complicated by the fact that | | | | calculating the final period in terms of days. |
| we are still adhering largely to a Roman system | | | | In adopting this system there is the added |
| of measuring time e.g. the Roman calendar. This | | | | advantage of being consistent regardless of the |
| quaint system means that we have a series of | | | | tenancy dates. For instance, in the scenario |
| months of varying lengths from 28 day to 31 | | | | outlined above where the tenancy commenced on |
| days and then just to confuse things even more | | | | the 31st but then ended on the 28th February. |
| we even have one month that doesn't know | | | | The final rent payment is calculated by measuring |
| whether it is 28 or 29 days long! | | | | the length of the last rental period, which starts |
| Given that most tenancies are monthly it is | | | | on the 31st and finishes on the 28th; a period of |
| theoretically possible to start a tenancy on the | | | | 28 days. It is then just a case of calculating the |
| 31st, the last day of the month for 5 months of | | | | total rent payment for the year and then dividing |
| the year. This can instigate a whole load of | | | | this by 365 to give you a daily rental amount and |
| confusion given that should the tenant move out | | | | then multiplying it by the final rental period i.e. 28 |
| at the end of the 6 month tenancy, there is a | | | | days to give the final rent due. This is how the |
| good chance that the month in which the tenancy | | | | Property Manager on Property Hawk calculates |
| comes to an end will have less than the 31 days. | | | | the final payments within its' digital rent book. Now |
| What should I do in this situation? | | | | the more pedantic amongst you will point out |
| Final rent payment - law & practice | | | | what about the time of the day, should I include |
| Whilst the above scenario is not likely to be that | | | | the day that the tenant moves in and moves |
| common, this confusion is useful in that it helps to | | | | out? |
| highlight the law. Legally most Assured Shorthold | | | | Time the tenancy starts |
| Tenancies including the one available free on | | | | I have already made the point that legally a six |
| Property Hawk relate to a calendar month. | | | | month tenancy is a six month tenancy. This |
| Therefore in the scenario set out above, legally | | | | means that if the tenant moves in at 11am on |
| the tenancy comes to an end on the last day of | | | | the 11th of January, their tenancy finishes at |
| the month. | | | | 11am on the 11th of June. If the tenants are not |
| This may leave your tenant feeling aggrieved that | | | | out by then you can charge them an extra days |
| they have to pay an extra days rent. This | | | | rent. However, most landlords with an ounce of |
| situation is exacerbated if the tenancy comes to | | | | humanity would not charge their tenants a whole |
| an end in February where they could loose out by | | | | days rent if they were a couple of hours late, |
| two further days. Some landlords feel | | | | particularly when the property was going to be |
| uncomfortable with this apparent inequity. Not | | | | empty anyway. But be clear, legally you could. |