The OpenRent tenancy agreement allows you to add interest to rent arrears after rent has been due for 14 days. After the 14 days have passed interest can be charged at 3% above the Bank of England base rate and calculated from the day the rent was due.
This is permitted under the Tenant Fees Act 2019.
In order to calculate how much interest is due you will have to undertake the following calculation:
- Multiply the rent arrears by the interest rate (3% above the Bank of England base rate)
- Divide the amount by 365
- Multiply the number of days in rent arrears
- Add the total interest calculated to the outstanding rent
We also have lots of information and advice in our other Help Centre articles and blog.
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.
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