Price a broken period as your landlord invoices it

When a lease starts or ends part-way through a month, the broken period is charged as a fraction of the rent, and there is more than one accepted way to work that fraction out. Lease102 used the monthly rent multiplied by the days you held the property, divided by the days in that month. If your landlord invoices on a daily rate of the annual rent divided by 365, which is common where apportionments follow conveyancing practice, the first invoice never quite matched the schedule and the difference sat on your lease clearing account.

You can now choose. Under Settings, Calculation Methodology, pick either basis as your organisation's default; an individual lease can differ, set on the lease form or the import review screen. Where the lease wording itself states daily apportionment, Lease102 applies 365ths for you.

For a lease starting on 16 May at £425 a month, the calendar basis gives a first payment of £219.35 and the 365ths basis £223.56. Both amortise to exactly zero. The point is that the schedule matches the invoice, so your clearing account clears.