Rent Payment Date & First-Period Apportionment
Many commercial leases commence part-way through a month but pay rent on a fixed contractual day (for example, the 1st of each month), with the first instalment pro-rated for the broken first period. Lease102 can model this directly so the schedule matches the lease wording.
What this handles
When a lease starts mid-month but the rent is contractually paid on a fixed day, two things differ from a simple monthly schedule: the payment dates and a pro-rated first payment. Lease102 captures both.
Rent payment day
The day of the month rent is actually due (1-31), when it differs from the commencement day. Set it and every payment is dated on that day instead of the commencement anniversary. This applies to monthly and annual leases; quarterly property leases use the Quarter Day calendar instead.
Pro-rated first period
If the lease apportions the first instalment for the broken period between the commencement date and the first payment date, Lease102 inserts a pro-rated opening payment for those days, then bills the full periodic rent on the fixed day thereafter.
First instalment on the commencement date
Some leases require that pro-rated first instalment to be paid on the commencement date itself, rather than on the first contractual rent day. Set First Instalment Timing to "On the commencement date" (on the lease form or the import review screen) and Lease102 treats it as a commencement payment under FRS 102.20.46: it is excluded from the discounted lease liability and added to the right-of-use asset, shown as a Period 0 settlement on the schedule. Set it to "On the first rent payment day" when the first instalment falls on the first rent day instead.
Explicit first payment date
When the lease names a specific first payment date that is not the derived rent day, set it directly. AI extraction reads it from the lease and pre-fills the editable "First Payment Date" field on the import review screen (it is also available on the lease form), so you can review or correct it before approving. It overrides the rent payment day for the first instalment and must be after the commencement date; leave it blank to derive the first payment from the rent payment day.
Worked example
A lease commencing 16 May 2026 that pays £425 per month in arrears on the 1st of each month:
How it is applied
Mid-month start, paid on the 1st
Day-count conventions
Separately, Lease102 already supports the day-count basis used to discount cash flows (actual/365, 30/360, actual/actual). The rent payment day controls when payments fall; the day-count convention controls how interest is accrued between them.