The Lemon Fool

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

brightncheerful wrote:(£1000 / 365) = £28.57 pd (rounded),

I don't understand any of your sums. £1000 pa is £2.74 per day.

Scott.

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!

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)