Late rent payment

[CH1]

My tenant has informed me that their rent due at 30th of this month will be late and if they can pay on the 15^th of next month… and asked if this is ok.

This is the first time they have paid late. So I initially told them (without looking at the tenancy agreement) if they could pay a day before the 15^th as that’s when my mortgage payment goes out. They have said they get paid on the 15^th with a bonus and can pay a month and half if I like in cash.

I then looked into the 6 month AST I have which is actually rolling statutory periodic as it expired in September and I didn’t issue a new AST but issued a Section 13 small rent increase. So would the conditions laid out in that AST still stand?

As regards to late payment the AST states “if T fails to pay within 7 days of due date, any amt of rent or other sum payable to landlord under this tenancy agreement, the T will on demand pay the landlord interest at the rate of 3% per year above Bank of England base rate calculated from the due date of actual payment”

Does that mean the interest charged would be 5.5% (B. E rate) + 3% =8.5%

Rent is £505/month so would that mean £42.92 extra per month or year?

The T is good and normally pays on time give or take 3-4 days due to standing orders fluctuations and always informs me in advance of any changes.

What would you do? Let them pay the usual amount when they say they can on 15^th (which will be 16 days late) or use the clause in the AST if it is still valid?

I want to keep a good contact with T so don’t wish to spoil anything equally I don’t want to get caught with mortgage payment if their payment is late.

[SPEEDTWIN]

The conditions of the orginal contract still stand except the rent which has been increased

[CH1]

Thanks, thats good that original AST conditions apply.

Now I'm unsure how much to charge for late payment as per conditions of AST or let it go this once?

Is the interest rate in the AST quoted in original post about the norm? and am I right in my calculation?

[Selkirk]

Personally, if they're a good T with no problems I'd let it go this time, obviously though the danger is that they may think they can do it again so I think it also important to try and make it clear that this is a one off without going over the top about it.

Good luck

cheers