Re-Leased works out partial rent and outgoings amounts whenever a charge covers only part of a billing cycle. You can 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.
In the Invoicing section, find Rent Proration Calculation Settings.
Select the method you want. The panel beside the options explains the method you have selected, and Calculation example opens a worked example.
Save your changes.
Override it on a tenancy
Open the tenancy and edit its details. The Rent Proration Calculation Settings dropdown lists every method, plus Use company default, which names the company method in brackets so you can see what the tenancy falls back to, for example Use company default (By rent period).
A method set on the tenancy always takes priority over the company default, even if you change the company default later. Leave the tenancy on Use company default and it follows whatever the company is set to.
The calculation methods available
Five methods are available. Each one sets how the daily rate is worked out for the partial period. All five are available to customers in every region.
The Annually method
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.
The Monthly method
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, and any calendar month covered in full is charged as a full month.
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.
The By rent period method
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.
The 360-day (30/360, US) method
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. A full calendar month always costs exactly one twelfth of the annual amount, whether that month has 28, 30 or 31 days.
This option follows the United States (NASD) convention.
Example: Annual rent $36,000, charged for 15 days. Daily rate = $36,000 ÷ 360 = $100.00 × 15 days = $1,500.00.
The 360-day (30E/360, European) method
Uses the same 360-day basis and the same daily rate as the US convention, and is the day-count convention commonly expected in UK and European commercial property.
The two 360-day conventions produce the same amount for almost every period. They differ in one situation only: when a rent period ends on the 30th of a month that has 31 days, and does not start on the 30th or 31st. In that case the US convention counts one more day than the European convention.
Example: Annual rent $36,000, so the daily rate is $36,000 ÷ 360 = $100.00. A period running 10 March to 30 March counts 21 days under the US convention ($2,100.00) and 20 days under the European convention ($2,000.00). For any other period, both conventions give the same amount.
Seeing which method each tenancy uses
Add the Proration Method column to your Tenancy Schedule report to see the method that applies to every tenancy in your portfolio, without opening each one.
The column shows the method the tenancy will actually use. Where a tenancy has no override of its own, the column shows the company default it resolves to rather than leaving the cell blank. Show and hide the column the same way as any other Tenancy Schedule column. The column is read-only and cannot be filtered on.
Each prorated invoice line also records the method that produced it, so you can trace any individual amount back to the convention used.
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.
If you selected the 360-day method before the European convention was added, your company stays on the US (30/360) convention and your amounts do not change. Switch to 360-day (30E/360, European) only if the European convention is the one your leases follow.
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.