If you are moving in on any day other than the first of the month, you will need to calculate and pay a prorated rent payment.
Usually, we will collect at least 1 full months' rent from you before you move in. This will usually be used to pay the landlord the rent from the day you move in until the end of the first month of your tenancy (for example, 10/03/2018 until 31/03/2018). This will then leave a credit in your account for the difference between a full month's rent and the prorated rent amount. This credit will go towards your next payment of the next months' rent.
You will need to calculate what credit you will have left and then deduct that from the full month's that is usually due and pay us the difference before the end of the first calendar month of your tenancy. This is what you should pay at the end of your first calendar month in the property, then you should pay the full rent at the end of every month from then on. We recommend using our helpful prorated rent calculator, found by clicking here. This calculator will show you all of the amounts and date you need to pay us.
What is prorated rent:
Prorated rent is when less than a full calendar months' rent is due. To calculate it you should calculate the daily rent (Monthly rent x 12, divided by 365 = Daily Rent) and times that by a number of days, including the first and last day. For instance, if your rent payment date is on the first of each month and your tenancy starts on the 18th of June, then you need to pay 12 days rent for June on or before last day of May – if your rent is £1000 per month, then that would equate to £394.56 (£1000 x 12 months, divided by 365 days of the year = £32.88 per day, times 12 days).
Please note it is always better to OVERPAY by a few pounds rather than underpay and be charged late fees. We will refund any over-payment of rent along with the deposit repayment at the end of your tenancy, or you can reduce a future payment to us to take any credit into account later, if required – many people pay a full month and then wait to receive a rent refund along with their deposit refund payment.
Making Sure Rent is Received ON TIME:
Rent is usually due on the first of each month. This means that the money must be in our bank account as cleared funds by 00:01 on the first of the month. In order to ensure that your rent is received by us as cleared funds by 00:01 on the first of the month, you will need to pay us BEFORE 16:00 on the last working day of each month. We recommend that you pay us on the 28th of each month (26th of Feb) - 90% of our tenants do this and their rent is always received on time.
Why is it important to pay my rent on time:
It is important that your rent is received on time for the following reasons:
- Fees apply immediately if your rent is not received on time. As per the terms of your tenancy agreement, a fee of £48 is due if your rent is not in our bank account as cleared funds at 00:01 on the 1st of the month. Further fees apply each week until all rent and any outstanding fees have been paid in full.
- We cannot give you a positive reference when you move out if your rent is paid late. This means that you will be unlikely to rent another property from a letting agent or landlord who carries out referencing in future.
- Your late rent payments may be reported to credit reference agencies and this may result in you receiving negative markers on your credit history and credit checks in future.
- Many mortgage companies are asking for rent payment references from tenants who apply for mortgages these days, therefore, paying your rent late may result in you not being able to take out a mortgage in future.
- It's the right thing to do. Most landlords are just ordinary people who need their rent to be paid on time so that they can pay the mortgage for the property and other costs associated with letting out the property such as the service charge. Some landlords rely on the rent as their retirement income, and therefore, if you do not pay your rent on time you may be causing financial trouble for your landlord.
- Paying 1 or 2 days late does not mean your landlord receives the money only 1 or 2 days late. We pay hundreds of landlords each month and therefore our banking works in large payment cycles. If you pay late and we are unable to pay your landlord during the first payment cycle of the month (when they should receive your rent), the payment might not go over to your landlord until the end of the next week, meaning that by paying just a couple of days late you're actually causing a delay of up to 9 days before your landlord actually receives the rent.
Please ensure that you follow what is required of you and that you pay your rent on time. To ensure this always happens, we recommend that you set up a standing order to pay your rent on the 28th of each month (26th of Feb).