Scenario:
Previous rent £1,000 pa up-to-date (to 28 September 2023)
Review date 4 September 2023
Revised rent £2,000 pa payable from and including review date.
Rent payable quarterly in advance, quarter date 29 September 2023
Question:
I have always calculated the rent for the period from and including 4 September until and including 28 September 2023 on the difference between the old rent £1,000 and the new rent £2,000 - ie, £1000 divided by the number of days, ie. 24 days. Hence:
(£1000 / 365) = £28.57 pd (rounded),
24 days @ £28.57 = £685.68
However, I am told that is wrong and I should calculate using £2,000 (ie, the annual rent), meaning that the back rent is £2000/ 365 = £83.33 X 24 = £1,999.92
What i’d like to know please is whether my way is correct or wrong.
tia
Bnc
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Commercial property rent review - calculating back rent payable
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- Lemon Quarter
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Re: Commercial property rent review - calculating back rent payable
brightncheerful wrote:(£1000 / 365) = £28.57 pd (rounded),
I don't understand any of your sums. £1000 pa is £2.74 per day.
Scott.
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- Lemon Half
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Re: Commercial property rent review - calculating back rent payable
Uh? If the rent is paid "quarterly in advance" then presumably the rent for 29-June to 28-September was paid on 29-June, no?
If the review date is the date from which the rent increases, then the additional rent to be paid for 4-Sep to 28-Sep, both inclusive, will be as you calculated, except (a) that's 25 days, not 24 and (b) your calculator is broken: £1000 / 365 = £2.74, not £28.57!
If the review date is the date from which the rent increases, then the additional rent to be paid for 4-Sep to 28-Sep, both inclusive, will be as you calculated, except (a) that's 25 days, not 24 and (b) your calculator is broken: £1000 / 365 = £2.74, not £28.57!
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- Lemon Quarter
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Re: Commercial property rent review - calculating back rent payable
Apologies for the calculator, it was my mistake.
However, the principle is, from what you've said, correct my way.
thx
(The June quarter day is 24 june; the others are 29 September, 25 December, and 25 March)
However, the principle is, from what you've said, correct my way.
thx
(The June quarter day is 24 june; the others are 29 September, 25 December, and 25 March)
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