Calculating interest due on late rent payments and arrears

london21

I  will be more interested in getting the arrears and getting the property back than arrears.

If they are struggling to even pay the rent, do you reckon you will get interest?

haveabreak

TBagpuss said:

YEs, you can do a spredsheet in excel...

Yes thanks. See Edit2 on original post for my rough calculation.

theartfullodger

Forget the interest - it just gives tenant more (usually many) grounds to challenge the overall debt number.

Simple keep issuing s8s for arrears, every time a payment is late or underpaid then take to court when over 2 months.

Don't forget (in future) that s8g10 may be validly served if only 1p is underpaid just for 1 day.  Very cheap way of sending message for price of a stamp.

mjm3346

theartfullodger said:

Forget the interest - it just gives tenant more (usually many) grounds to challenge the overall debt number.

Simple keep issuing s8s for arrears, every time a payment is late or underpaid then take to court when over 2 months.

Don't forget (in future) that s8g10 may be validly served if only 1p is underpaid just for 1 day.  Very cheap way of sending message for price of a stamp.

that, specially for relatively small sums

eddddy

haveabreak said:

How did you arrive £90? Did you work out the interest on a daily basis depending on the balance of arrears (30 days interest on £1,000, then 7 days interest on £2,000 etc) as per the previous comment?

Yep - that's exactly how I worked it out. (I didn't check the exact dates of the interest rate changes - so they are not quite right).















Edit to add...

The toughest part was that I had to use OCR to covert your image to a table of numbers for Excel!

saajan_12

The payment history looks strange - while the timings are all over the place, they seem to be paying exactly £615 a month.

* What proof do you have about the rent amount - were they paying the full £1000 before Nov21?
* What communication was there over the past year that the arrears were building up, eg any rent statements from you? 
* Why exactly £615 and the split into two payments? If they knew they owed more but were paying what they could afford, then you'd think they would pay a bit more / less some months. 
* Why the £15 separate payment? Was that definitely for rent?

I've listed a few questions to think about, but would check you will be getting the arrears. 

haveabreak

saajan_12 said:

The payment history looks strange - while the timings are all over the place, they seem to be paying exactly £615 a month.
....

I asked about the calculation of interest. All your questions are answered in the OP.