Our business income is based on rental payments, and to make things run smoothly we need regular, reliable cashflow. We set rental due date as the 1st of the month (and all our bills are set to come out on the 5th).
In order to do this, given people move in on different dates, we collect rent in a pro- rated way, like this:
Move in day you pay 1 months rent plus security deposit or insurance fee. Then next month on your move in day anniversary, you pay the difference to the 1st of the following month. Then on the 1st of the following month the direct debit will take over.
What it looks like – an example:
Rent per month = £500
Move in 16th July
On 16 July – Pay balance of rent^ + security deposit = £500 + security deposit
Next month – 16 August – pay rent from 16 Aug – 31 Aug = £263.04*
Then 1st September – pay rent £500
^Your first weeks rent might already be paid, so this is the balance of the months rent
£500 x 12 months / 365 days = £16.44 per day
£16.44 x 16 days = £263.04
Want to pay weekly or other?
You can contribute to your rent manually or by standing order instead of by direct debit . In order to do this, please ask for your specific reference details to set up your standing order so that it is counted against your rent bill correctly and the direct debit takes the correct amount.