What Interest to chase on Late rent?
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.