Rent arrears interest calculation?

[Yella Fella]

I want some confirmation of this, and mainly around the maths:
The Tenancy Agreement states:

"If you owe rent you must pay under the agreement, you will have to pay interest on this amount from
the date that it should have been paid where you are 14 days or more in arrears. The interest rate is
3% above the base rate used by the Bank of England". This is currently 5.25% so 8.25%

If the rent is £1000 per calendar month and no rent has been paid since the rent day

1) Is the calculation per day or per year

i.e. if rent arrears are £1000, calc is (simple interest assumed) either
1000 x 0.0825 = £82.5 per day or
1000 x 0.0825 / 365 = £0.23 per day (rounded up)

2) Is the interest rate chargeable compound or simple interest?

3) After 14 days, is the interest rate chargeable from day 1 or day 14?

If the latter part of par 1), it surely gives the incentive to the tenant not to pay as the interest is so so low anyways.

Confused...

 

[Yella Fella]

True though no doubt they will just get another place and the landlord will be left stung with a massive mortgage via unpaid rent and bills they didn't pay.

 

[Yella Fella]

If you have to ask questions like this then you probably shouldn't be anywhere near tenants. Or properties. Or money in general.

I was hoping you'd turn up to have your say. Let's go!!

 

[Yella Fella]

I seldom disappoint. If there's a cheap quip to be made at someone else's expense, I'll be there. Like a turd that just won't flush. Floating around in your toilet bowl laughing at your incompetence.

That's still good to get some advice from the forums. Do you recommend putting a certain amount towards investments or some sort of savings?

 

[Yella Fella]

I must admit, being under the weather my usual sunny disposition has faded somewhat

Hope you get better soon. Its Friday at least.

 

[Yella Fella]

What a crappy landlord, I'd stop paying the rent and smash the place up...


if you pay the rent in advance do you then earn interest on those payments until the due date?

I bet the rent goes up by 9% a year or something daft too.... sounds like a proper nazi landlord

8.25%.... I bet loan sharks offer better rates

Yeah that didn’t work. Only for the landlord to charge more for messing the place up.

Just meant loosing the deposit. Good to know tenants don’t need to pay rent let alone on time. Squatter rights is real ha

 

[Yella Fella]

it is if a landlord starts extracting urine

To be fair it is their territory to mark it as they choose.