Rental companies often deal with monthly durations differently. While some run contracts according to actual calendar months, others count a fixed number of days in each month. For example, monthly contracts for some companies last 28 days irrespective of the calendar month.
Companies often use this strategy to standardize rental periods and simplify rental calculations. While billing for actual monthly durations can be more accurate, it also means a lot more work! Whatever your pricing strategy may be, you can easily implement it across EZRentOut. The period of time you delineate as a month will then be used across the system for all sorts of calculations.
To configure the rental month duration in EZRentOut, go to Settings → Company Settings → Policy → Order Month Duration. Choose the Number of Days in a Month option, make your selection, and save your settings.
The ‘Variable’ option picks the actual calendar month each time, meaning January would be a 31-day month, February a 28-day month, etc. This option is enabled by default.
What about the other options? They consider all months to be of a fixed and equal length. As an example, say we set the rental month duration to 28 days. Any aspect of the system affected by months – such as Order Duration, Advanced Rental Rates, Late Fees, etc. – will be adjusted to have 28-day months.
Let’s see how this affects different aspects of EZRentOut. Please note that these examples are laid out with Inclusive Pricing enabled.
Standard Rental Pricing
Here we will see how having a ‘28-day’ or a ‘Variable’ Order Month Duration affects the expected Return Dates in Standard Rental Pricing. We will be using a projector rental for our example. This is how it is priced:
Rental Pricing: $140.00 per month
With the ‘Variable’ Order Month Duration in place, a month-long order would conclude on the same date of the next month. In this example, you can see if you rent out an asset on the 1st of January, a month will have elapsed on the 1st of February.