Fair contract?

islalr

Is this contract legal? I heard that any charges on late payments need to be justified as they are there to cover any costs for the landlord rather than allow them to make profit

The contract states:

Penalties
Pay the sum of £35.00 due to overdue payment of rent.

1.3 Pay Interest
Pay interest at the rate of 4% above the Bank of England base lending rate in force on a day to day basis on any amounts of rent or other monies due and in arrears from the date that the same shall become due until payment in full be made.

the rent will be around £550 a month, so they are stating that we'd have to pay a £35 charge, and then £22 pounds a day until we repay it. I hope to never pay late but I just want to verify that this is acceptable?

Thrugelmir

I make the interest around 7 pence day.

As for the fixed charge. People's time is expensive. As not just salaries but all the overhead costs as well.

theartfullodger

islalr wrote: »

....Penalties
Pay the sum of £35.00 due to overdue payment of rent.

How would they collect if you refuse to pay?? Deposit - no scheme would permit it - or courts, can't see any judge agreeing it. So they would evict using s21.

Probably best to simply pay in full & on time & avoid the argument: Bit radical but, hey, consider it!

1.3 Pay Interest
Pay interest at the rate of 4% above the Bank of England base lending rate in force on a day to day basis on any amounts of rent or other monies due and in arrears from the date that the same shall become due until payment in full be made......

Again, easiest to pay in full & on time (cf do you want the landlord to not deliver his side of the contract??), and again, how would they collect...

But it is unclear: As worded it could be said that it entitles LL to charge 4% above BoE PER DAY on outstanding balance.

I'd ignore those clauses, don;t even mention them: If you do they'll likely decline to rent the place to you.

They are simply almost-certainly-unenforceable-clauses trying to "encourage" you to pay on time. Me (a landlord) I give a bit of leeway - a few days - but if not paid within a week simply issue s8 (or equivalent). The message is usually understood.

islalr

Thank you! I am expecting to pay on time, but its private student accommodation so I was just checking that they weren't trying to overcharge if anything did happen because they believe we're too naive to realize that its all rubbish.

Thrugelmir

islalr wrote: »

I was just checking that they weren't trying to overcharge if anything did happen because they believe we're too naive to realize that its all rubbish.

Most companies use legal services in drawing up contracts. As you've done, quite correctly, is read what you are signing. Even in business people fail to read the T&C's until it's far too late.