What Interest to chase on Late rent?

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M
Modge
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Hi Folks,

I have a tenant who has had a few problems and the rent has been consistently late. Whilst I have in the past not resorted to the small print I now need to get tougher. I have the standard AST agreement and it states that interest shall be paid on late rent at 3% + RBS base rate - 3.5% currently.

Is that 3.5% of the monthly rent per day?

I have another tenant with a different AST (set up before I joined the RLA) where it states that when the rent is more than 7 days late interest will be paid at 10% paid from the due date until the date the rent was actually paid.

Now this tenant is paying me 700 pcm in rent so does that mean the interest is 10% of 700 = 70 per day? This seems excessive!

Thanks in advance.

Modge

21/11/2010 00:00

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