Landlord charging EXCESSIVE late rent interest – Help?! | The Tenants' Voice
Cookies must be enabled for this site to function properly

Topics / Rent 

start a new discussion

Landlord charging EXCESSIVE late rent interest - Help?!

0 helpful votes
This is the number of people who have indicated that they have found this discussion useful.
840 views 2 replies latest reply: 14 September 2015

Hi there,

I’ve recently moved out of a property and I am trying to get my deposit back. From damages cost aside, our landlord is trying to charge us excessive rent interest.

A long story short, we had a tenant abandon us for 3 months and so 1/4 of the monthly rent was unpaid for 3 months, until we found a new tenant and eventually paid off the outstanding rent. Our landlord has charged us an insane amount of interest on this late rent, however, I feel she is missing a part in her calculation of this.

She has used 3% above BoE to charge interest, so this is 3.5% I believe. However, to me it seems she has charged us the ANNUAL interest rate on a DAILY BASIS. In other words, I think she forgot to divide by 365 to get the daily charge along the way. Can anyone shed some light on these workings? As this interest on rent seems ridiculous.

I tried uploading a picture but can’t seem to work it out so I’ll summarise the workings..

For each day that rent was not paid she has incurred a charge of 3.5% of the amount of rent owed. For example, £350 was not paid for 304 days in total by the tenant who left (number of days accumulated altogether from all the months of unpaid rent = 304 days).

So she has done .. 3.5% of 350 (rent pm for each tenant) which works out as £12.25. Now she has incurred this £12.25 daily and so £12.25 x 304 = £3724 as interest. Which seems crazy.

From what I’ve read her workings should have been 3.5% x £350 = £12.25 … £12.25/365 (To get daily rate?) = 0.0335 (3/4p a day?)

In my tenancy agreement this is all the information on rent interest …

To pay interest on any payment of Rent not made as set out in clause 2 of this Agreement.

Interest is payable from the date on which the Rent was due until the date on which the Rent is actually paid. The interest rate will be 3% above the Bank of England Base Rate.”.


Thanks for the help guys!

Get up to £120 in discounts !

Save 10% on 25+ services for your home and garden when you book with Fantastic Services !

Book now and use promo code FTTV10* to receive 10% OFF the price of 25+ services for your home and garden !

Get 10% OFF the price of your service with our promocode:

  • 10% OFF End of tenancy cleaning
  • 10% OFF Removals
  • 10% OFF Handyman services
  • 10% OFF Garden Maintenance
  • 10% OFF Carpet cleaning
  • 10% OFF 25+ more services for your home and garden

*Use code: FTTV10 to get 10% OFF all services (Excluding Locksmith Services).

Minimum charges and T&C apply! Can not be combined with other offers and discounts. No expiry date.


Irrespective of the erroneous mathmatics the Landlord has a duty of care and must not charge unfair amounts at any time. 

There are many answers to your questions at this link to The Property Ombudsman

Hope that helps you….

Showing 1 - 2 of 2 Comments
start a new discussion

Post a reply