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.
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. However, as interest rates increased in 2022/2023 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, which is why we’ve created our free rent arrears interest calculator.
We’re not in the business of charging interest to tenants who are genuinely struggling to pay their rent and are keeping in touch, but for instances where you have to chase tenants repeatedly for late rent, the interest charges may go some way towards covering the cost of your time.
- 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.
