How to claim interest on Late rental payments

jamima_2

Hi if anyone can help I would be grateful. My tenant had an agreed rent reduction fir 3 months. However she exceeded that and was late by over 6 months. I have eventually got the money and she has left. She is now asking fir a refund as she’s gone 6 days early. The contract extension she received from the agents (finding only) was ‘interest may be payable on any late rental payments. Can I charge her and if so how do I work it out? 

Thanks 

moneysavinghero

You have got rid of her and you have got the rent back. If i were you i would be happy and just leave it there rather than messing about for a few quid. Tell her no refund, she has to pay in full rental periods.

theartfullodger

Forget it.  If you claim interest & it gets to court there'll be more arguments about paperwork, interest rates, evil wicked landlords etc etc..You might be told to repay some more of the rent.

She's gone: You've got most of the rent.  Give her the 6 days and avoid legal arguments and being bad-mouthed locally.

Artful: Evil wicked landlord

AdrianC

There's no statutory right for a business to charge interest to a consumer for a late payment - the legislation only applies to business-to-business.

If the tenancy just says "may be payable", I doubt you'd have much of a leg to stand on in a small claim court. With the bank base rate as low as it is, how much time, effort, and blood pressure do you want to put into trying to charge a pittance?

How much was late for how long?

user1977

You hadn't agreed what the rate of interest would be, and in practice rates are so low at the moment that it hardly seems worth quibbling about.

Hannimal

She is clearly struggling financially. Why would you want to milk her more than you already have. It sounds that despite some late payments you've made a decent profit out of someone who is struggling with money. Why not be a decent person now and forget about the interest. Some LL should not be LL.

saajan_12

jamima_2 said:

Hi if anyone can help I would be grateful. My tenant had an agreed rent reduction fir 3 months. - thats nice! However she exceeded that and was late by over 6 months. - shame, give an inch.. as they say. 
I have eventually got the money and she has left. - great, this is usually the hardest bit by a long way. 
She is now asking fir a refund as she’s gone 6 days early. - under what circumstances did she leave, ie who served notice, or did you mutually agree? Usually rent is not subdivisble so she likely can't get the days back, but  depends on the answer to my question. 
The contract extension she received from the agents (finding only) was ‘interest may be payable on any late rental payments. Can I charge her and if so how do I work it out? - what exactly did it say? Now that you've got it, any right to interest is based on contract, not statute, and a mention of "interest pay be payble" without a set % is likely too vague. Besides, how late was she? At current base rates, its likely pennies. 

Thanks 

Not sure why other posters are actually down on you or suggest you should be grateful after giving the tenant a break and still being treated badly. However pragmatically, you likely don't have a strong claim for interest and even if you do, the amount will be too small for the hassle. 

[Deleted User]

Hannimal said:

She is clearly struggling financially. Why would you want to milk her more than you already have. It sounds that despite some late payments you've made a decent profit out of someone who is struggling with money. Why not be a decent person now and forget about the interest. Some LL should not be LL.

Ah I see what you did there. Take a landlord who has agreed a rent reduction for three months, then accuse him of milking profits. Decency would be to pay your rent.
Stick to the contract OP and dont be refunding anything.

HampshireH

Hannimal said:

She is clearly struggling financially. Why would you want to milk her more than you already have. It sounds that despite some late payments you've made a decent profit out of someone who is struggling with money. Why not be a decent person now and forget about the interest. Some LL should not be LL.

You mean by providing a home for her which she may otherwise not have had?

Landlords arent charities. Just like you don't go to the shop and expect them to fill your wardrobe for free or the gas/electric bill to come to zero every month yet have a lovely warm home with hot water.

I'm struggling to see what the OP has "milked" their tenant for.

That said I don't feel a claim on interest is necessary.

[Deleted User]

jamima_2 said:

Hi if anyone can help I would be grateful. My tenant had an agreed rent reduction fir 3 months. However she exceeded that and was late by over 6 months. I have eventually got the money and she has left. She is now asking fir a refund as she’s gone 6 days early. The contract extension she received from the agents (finding only) was ‘interest may be payable on any late rental payments. Can I charge her and if so how do I work it out? 

Thanks 

Does the tenancy agreement say anything about interest rates for late rent payments?