Re-Leased works out partial rent and outgoings amounts whenever a charge covers only part of a billing cycle. You can now choose the calculation method Re-Leased uses for these partial periods, so your invoices match the convention your business already follows.
Where the proration method applies
Your chosen method is used consistently everywhere Re-Leased charges for a partial period, including:
The first partial invoice when a tenancy term starts mid-cycle.
The partial invoice or credit note when a tenancy is vacated or a term ends.
The old-rate and new-rate portions of a rent review that takes effect mid-cycle.
Rent-free period deductions that fall partway through a billing cycle.
Partial outgoings (service charges) at term start, end, renewal and vacate.
Rent billed on a custom payment frequency.
Setting your calculation method
Set a default method for the whole company, then override it on individual tenancies where needed.
Set the company default
Go to Settings > Manage Companies and select the company.
Under the Invoicing section, choose your Proration Calculation Method.
Save your changes.
Override it on a tenancy
Open the tenancy's invoice options and set a proration method for that tenancy. A method set on the tenancy always takes priority over the company default, even if you change the company default later. Leave the tenancy set to use the company default and it will follow whatever the company is set to.
The calculation methods
Four methods are available. Each one sets how the daily rate is worked out for the partial period.
Annually
Divides the annual amount by the number of days in the year (365, or 366 in a leap year), then multiplies by the days charged. This is the default and matches how Re-Leased has always calculated partial periods.
Example: Annual rent £36,500, charged for 19 days. Daily rate = £36,500 ÷ 365 = £100.00 × 19 days = £1,900.00.
Monthly
Divides the annual amount by 12 to get a monthly amount, then by the number of days in that calendar month, then multiplies by the days charged. Where a partial period spans more than one calendar month, each month is calculated at its own daily rate.
Example: Annual rent £36,500, charged for 19 days in April (30 days). Daily rate = £36,500 ÷ 12 ÷ 30 = £101.39 × 19 days = £1,926.39.
By rent period
Divides the full amount for that billing cycle by the actual number of days in the cycle, then multiplies by the days charged. This ties the daily rate to the specific period being billed, so a shorter quarter costs slightly more per day than a longer one.
Example: Annual rent £40,000 billed quarterly (£10,000 per quarter). The July–September quarter has 92 days, and 15 days are charged. Daily rate = £10,000 ÷ 92 = £108.70 × 15 days = £1,630.43.
For standard monthly billing, By rent period and Monthly usually produce the same result. The difference shows up on quarterly and custom billing cycles.
360-day (30/360)
Treats every month as 30 days and the year as 360 days, a convention common in commercial finance. The daily rate is the annual amount ÷ 360, multiplied by the days charged on the 30/360 basis.
Example: Annual rent $36,000, charged for 15 days. Daily rate = $36,000 ÷ 360 = $100.00 × 15 days = $1,500.00.
The 360-day method is available to North American (United States and Canada) customers only. If it is selected for a customer outside North America, Re-Leased uses the Annually method instead.
What happens to your existing tenancies
Nothing changes unless you change the setting. Every company starts on the Annually method, so your invoices are calculated exactly as they are today. When you choose a different method, only invoices generated from that point forward use the new method. Re-Leased does not recalculate invoices you have already raised.
In Europe, "Outgoings" are referred to as "Service Charges". In North America, "Tenancies" are referred to as "Leases". For more information, see our Glossary of Regional Terminology.