Rent Credit Conversion Method

Rent that is paid at a monthly frequency is charged at the same total amount each month covering the whole month regardless of the number of days. 

A month may contain 28, 29, 30, or  31 days. 

A credit can occur when an amount is paid that does not equate to the entire months worth of rent. This will result in the following appearance on your tenancy ledger. 

Rent paid from 06/01/2025 to 05/02/2025 (Credit: $1367.00)

OurProperty will convert a credit amount to actual days paid and moved the paid to date (PTD) forward accordingly. 

Actual days paid means the day has been paid in full.

The number of days the credit amount pays you forward is calculated using two data points:

1. The monthly rent amount

2. The number of days in the month your rent is in credit for. This is important when determining the remaining value of rent to be charged for the monthly period. 

Conversion Steps

Data Points:

Monthly Rent Amount: $1651
Month: February
Current Paid to date 05/02/2025
Rent Next Due Date 06/02/2025

1. Determine the number of days in the month the credit is applied to. E.g. February has 28 days. 
   Rent paid from 06/01/2025 to 05/02/2025 (Credit: $1367.00) 
   
   
2. Calculate the daily rate of monthly rent
   $1651 X 12 / 365 = $54.279452054794520547945205479452
   
   
3. Divide the amount in credit by the daily rate
   $1367 / $54.279452054794520547945205479452 = 25.184 
   This means that $1367 covers 25.184 days worth of rent. 
   
   
4. Round the answer in step 3 down to the nearest whole number to determine the number of days paid in full
   25.184 = 25days. 
   
   
5. Multiply the number of days paid in full (answer of step 4) by the daily rate 
   25 X $54.279452054794520547945205479452 = $1356.986301375
   This means that from $1367 in credit, $1356.99 pays 25days rent in full. 
   There will be $1367 - $1356.99 = $10.01 remaining in credit towards another days rent. 
    
6. Subtract the 25 days of rent from the monthly amount
   $1651 - $1356.986301375 = $294.013698625
   The answer given here tells you how much rent is left to be paid to pay the month out in full. 
   
   
7. Determine the number of days rent is payable with 294.013698625
   $294.013698625 / $54.279452054794520547945205479452 = 5.416666667 = 6
   This means there are 6 days left in the month to be paid with $294.01
   
   
8. Work out the new paid to date by subtracting number of days still payable from the total number of days in the month
   28 - 6 = 22days
   
   
9. Add 22days to the current paid to date
   05/02/2025 + 22days  = 27/02/2025
   
   
10. The credit ($1367) has been converted into actual days paid (22) with a remaining amount  in credit ($10.01). 
    
    
11. On the next due date (06/02/2025) the amount left to be paid ($294.01) will be charged to pay the remaining days owed in the month (6days). 
    
    
12. $294.01 will pay rent from 28/02/2025 - 05/03/2025. 
    
    
13. Rent is aligned with the next monthly due date of the 6th of each month. 

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