Rent Arrears Interest Calculator
Landlords don’t want to charge tenants late payment fees, because it means they will have had to deal with late rent payments and chasing tenants for their rent. In the unfortunate situation that you need to charge interest, our free rent arrears interest calculator will save you loads of time.
Since the introduction of the Tenant Fees Act 2019, late rent fees have been restricted so much that they provided very little incentive for tenants to pay their rent on time. As interest rates increased in 2022/2023 however, late payment interest (set at 3% above the Bank of England base rate), has made interest charges more substantial, but also very complex to calculate. That’s why we’ve created our free rent arrears interest calculator. Try it now for free, download it using the form below.
We’re not in the business of charging interest to tenants who are genuinely struggling to pay their rent and are keeping in touch. When tenants stop paying and stop communicating with you, interest charges may go some way towards covering the cost of your time.
What does the legislation say?
- Rent arears interest is capped at 3% above the Bank of England base rate.
- Interest can only be charged if a rent payment is late by more than 14 days.
- Once a payment is late by more than 14 days, interest can be charged from the first day the rent was late.
- Interest can only be charged if the charges are listed in the tenancy agreement.
If you need any assistance with using the tool, please get in touch, investors@purplefrogproperty.com, 0121 227 4188. Discover more free tools and resources for property investors.
