Calculate Legal Interest Rental Agreement | Legal Aid

Questioner

I have rented out my home and the broker pays us the rent so no hassle. Now he wants to stop. In the contract the 5th of each month the amount is on my account. and every day that he is late the legal interest of the rented amount applies. What is the interest that applies to this, and how do you calculate that?

Lawyer

There are a number of free calculators on the Internet that you can use to calculate the statutory interest rate. If the contract stipulates that after the expiry of the final payment date the debtor is legally in default, you can charge statutory interest on outstanding rental terms from the 6th of each month. You must calculate this separately for each month. There is some work involved in making a good statutory interest calculation, partly because the law stipulates that payments are first deducted from any statutory interest due and only then from the principal. I advise you to seek the help of a lawyer for this.