Rent due date not first day of tenancy

#1
We have a tenancy that started on 28th Jan but the rent due date is the 1st of the month, so we set up the tenancy to run from 28/1/12 to 31/7/12, with a bit of extra rent being paid upfront to cover the few days at the end of January.

I've set the "Due day" field to 1, so the PM3.0 system should know that rent is due on the 1st, but it still insists on telling me that it's due on the 28th of the previous month, and I have to change it manually every month - which of course I can't do until the 1st, by which time the system reckons it's several days overdue.

Please can this be looked at?
 

Jeffrey Shaw

Member
Staff member
#2
We have a tenancy that started on 28th Jan but the rent due date is the 1st of the month, so we set up the tenancy to run from 28/1/12 to 31/7/12, with a bit of extra rent being paid upfront to cover the few days at the end of January.

I've set the "Due day" field to 1, so the PM3.0 system should know that rent is due on the 1st, but it still insists on telling me that it's due on the 28th of the previous month, and I have to change it manually every month - which of course I can't do until the 1st, by which time the system reckons it's several days overdue.

Please can this be looked at?
[Chris will reply on 'Database' aspect; this reply deals with L&T aspect only]
Was there a particular reason why the rent day had to be the first of the month and not the twenty-eighth?
And why did you let for six months and four days?
 
#3
We agreed to make the rent due on the 1st of the month so that it was one of the first things to be paid out of an end-of-month pay packet (rather than the last), and put an extra four days on the tenancy so that the monthly rent was still being paid right at the beginning of each period rather than a few days in. First month + extra four days were paid in cash on move-in, and each subsequent period has coincided with a calendar month.

Not likely to cause any legal difficulties I hope?
 

chris horne

Member
Staff member
#4
Hi Lynne,

The system has been to designed to calculate rents on a monthly basis. So when you create your tenancy starting on the 28.1.12 the way the property manager calculates the rent due on the basis that the last day of the 6 months rental period is the 27.7.12. The first period of the NEXT 6 month rental period would be the 28.7.12. The due day field is there as purely an advisory indicator in case you decide to agree an alternative payment date (some landlords will agree informally a change of payment date with their tenants) with your tenant and has no baring on the methods of calculation by the property manager. Legally the rent remains due on the 28th of each month. I hope this clears things up.
 

Jeffrey Shaw

Member
Staff member
#5
We agreed to make the rent due on the 1st of the month so that it was one of the first things to be paid out of an end-of-month pay packet (rather than the last), and put an extra four days on the tenancy so that the monthly rent was still being paid right at the beginning of each period rather than a few days in. First month + extra four days were paid in cash on move-in, and each subsequent period has coincided with a calendar month.

Not likely to cause any legal difficulties I hope?
Cannot say- but does the Letting Agreement provide explicitly that rent falls due every month on:
a. the first day (in which case Chris is wrong to say Legally the rent remains due on the 28th of each month); or
b. the twenty-eighth day?
 
#6
Tenancy agreement says
The first FULL payment of rent shall be paid on the 28th day of January 2012 [though there was no space on the form to specify the extra 4 days' worth]​
and thereafter shall be payable on the 1st day of every month​
 

Jeffrey Shaw

Member
Staff member
#7
Tenancy agreement says
The first FULL payment of rent shall be paid on the 28th day of January 2012 [though there was no space on the form to specify the extra 4 days' worth]​
and thereafter shall be payable on the 1st day of every month​
OK- so it's legally due on 28 January, then 1 February, then 1 March, etc.
 

chris horne

Member
Staff member
#8
Thanks Jeffrey for pointing this out. I'm not sure Lynne whether this is what you intended? I guess there is an argument for keeping things simple and just having a tenancy agreement that just requires payment on the same day of the month. I don't know what other peoples view is on this. Certainly it complicates things from a software point of view.
 

Lynne

New Member
#9
Yes, that was the intention. In future I think I would rather go with the simple approach, but as so many people get paid at the end of the month, the 28th is generally not a good time to be asking for a third of their net pay to be handed over!
 

chris horne

Member
Staff member
#10
Very good point Lynne. There is nothing however stopping you agreeing informally with the tenant a different payment date. So, the rent is due legally on the 28th of the month BUT the tenants don't actually pay you until say the 2nd or 3rd of the following month. This way there is no confusion with the tenancy and payment due dates and the tenant has the benefit of a full salary cheque with which to pay you your 'lovely' rent.
 
#11
I too would prefer to have flexibility on the due date. There are always going to be times when the start date of the tenancy and the due date of the monthly payments are not the same. Our previous system was able to deal with this and notify us of a rents due on the due dates. Lynne's situation is very typical for us.