Changing from Monthly to Fortnightly

I have a tennant who wants to change from Monhtly rent to fortnightly rent to match pay cycle. I'm happy to do this but im having trouble getting both our heads around how much to pay.

So if the monthly rent is due on the 10th of this month then the tennant needs to pay the full month to me to keep the rent 1 month in advance

Correct?

Then when the tennants pay day is a week later on the 17th do they pay me 1 weeks rent then every fortnight after that 2 weeks rent?

Is this right or am i missing something.
 
So if the monthly rent is due on the 10th of this month then the tennant needs to pay the full month to me to keep the rent 1 month in advance Correct?
If the monthly rent was due on the 10th this month, then on the 10th they have basically run out of rent money at that point and you are all paid up to the 10th only.

Then when the tennants pay day is a week later on the 17th do they pay me 1 weeks rent then every fortnight after that 2 weeks rent?
If they are then to pay fortnightly in advance, (not monthly) then they would pay you 1 week's rent for 10th to 17th. Then on the 17th they are fully paid up again. Then on the 17th they would pay you 2 weeks in advance for the next 2 weeks.
 
I have a tennant who wants to change from Monhtly rent to fortnightly rent to match pay cycle. I'm happy to do this but im having trouble getting both our heads around how much to pay.

So if the monthly rent is due on the 10th of this month then the tennant needs to pay the full month to me to keep the rent 1 month in advance

Correct?

Then when the tennants pay day is a week later on the 17th do they pay me 1 weeks rent then every fortnight after that 2 weeks rent?

Is this right or am i missing something.


The formula for converting from monthly to fortnightly payments is

A x 12 / 365 x 14

so if the current monthly rent is $2,500 then

$2,500 x 12 / 365 x 14 = $1,151 per FN

Working out the transitional arrangements was covered by the previous poster.
 
If the monthly rent was due on the 10th this month, then on the 10th they have basically run out of rent money at that point and you are all paid up to the 10th only.

If they are then to pay fortnightly in advance, (not monthly) then they would pay you 1 week's rent for 10th to 17th. Then on the 17th they are fully paid up again. Then on the 17th they would pay you 2 weeks in advance for the next 2 weeks.

If they want to stay one month in advance though but pay fortnightly wouldn't it be different?
 
another angle...

Current monthly rent paid to 10th July 2010.

Current monthly rent: $1,560

Paid to dates: If paid to 10th July 2010

New fortnightly rent would be: 11/07/2010 to 24/07/2010 (not from 10th - this is included in the last cycle)

New fortnightly rent amount: Fortnightly conversion:

Monthly rent x 12 months / 26 weeks = fortnightly rent
$1,560 x 12 / 26 = $720 per fortnight

Easier to ask them to stay 4 weeks in advance - keep the value amounts on the same platform so you don't get confused.

If the tenants do pay a little extra e.g $800 for the fortnight:
Recommend use credit system:

So your paid from and paid to dates will look like this:

Rent paid from 11/07/2010 to 24/07/2010 ($20 Credit)

Reason: you keep your ledger consistent in fully weekly blocks.

Hope this helps.

Lu
 
If the tenant has to go fortnightly they cant manage there money.
From my point of view that is a red flag.
I see that as the first sine of difficulties with that tenant.

Gerd
 
If the tenant has to go fortnightly they cant manage there money.
From my point of view that is a red flag.
I see that as the first sine of difficulties with that tenant.

Gerd

I see your point but i know the person and they just want it to match up to fortnightly pays.
 
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