How do Rental Rates Work

This page explains how charge days per week, pricing methods, rate types, and modifiers all work together to shape billing in Latner.

Charge days per week define the schedule of billing, which then drives the chosen pricing method. Each pricing method flows down into specific rate types, and these rate types can be further refined with optional modifiers.

The content provides definitions, use cases, and FAQs to clarify complex scenarios such as minimum hours, excess usage, stand downs, and rental rate variations.

Charge Days Per Week

The Charge Days Per Week sets the cadence for how days are counted in rate types, except for Flat Monthly and Minimum Hours Per Month. When deriving daily rates from weekly or monthly rates, the number of charge days per week is the main factor.

It also ensures customers aren’t billed for non‑charge days (e.g., weekends in a 5 Days scheme)

• 5 Days: Monday–Friday

• 6 Days: Monday–Saturday

• 7 Days: Monday–Sunday

• Saturday: Saturdays only

• Weekends: Saturday-Sunday

This can be set on a header level which affects all in one contract but can be set on each detail line per equipment, if required.

Pricing Methods

The overall pricing structure for how Rate Types are applied. This is the top level of rates and works Rate Types in conjunction with the Charge Days Per Week.

Fixed Pricing

Definition: One rate type per period (Daily, Weekly, 24hr Variations, Monthly, Flat Monthly, Hourly, Minimum Hours Per Month)

Use case:

• Simple, predictable, and easy to explain.

• Best for long-term contracts or customers who want budget certainty.

Daily/Weekly Pricing

Definition: Two rate type tiers - Daily and Weekly, based on Charge Days Per Week.

Use case:

• Flexible for customers with uncertain hire lengths.

• Ensures fairness by automatically switching to weekly if it’s cheaper than stacking daily rates.

Tiered Pricing

Definition: One or more rate type tiers triggered by Days On Rent thresholds. (Daily, Weekly, 24hr Variations, Monthly, Hourly)

Use case:

• Scales pricing with hire length.

• Rewards longer hires with lower effective rates.

Operator Pricing

TBC

Rate Types

The specific type of billing used and sub level within Pricing Methods.

Daily

Definition: Charges per billing day at the daily rate.

Use Case: Short hires where customers want clear day‑by‑day costs.

Daily (24hr)

Definition: Each billing day runs as a full 24‑hour window from the hire start time.

Use Case: Precise hires where timing matters (e.g., exact start/end times).

Weekly

Definition: Charges per billing week at the weekly rate.

Use Case: Medium‑length hires where weekly budgeting is easier.

Weekly (24hr)

Definition: Each billing week runs in continuous 7‑day windows from the hire start time.

Use Case: Hires where exact start/end times define the billing week.

Monthly

Definition: Charges per billable month, with proration if the hire is shorter.

Use Case: Longer hires where monthly charges is standard.

Flat Monthly

Definition: A fixed monthly fee from the hire start date through to the day before the same date in the following month.

Use Case: Long‑term hires where customers want predictable, fixed monthly costs.

Minimum Hours Per Month

Definition: Accrues charge hours per day until a monthly minimum of hours is reached. Excess hours from meter reading are charged every month.

Use Case: Equipment where meter reading usage varies but a minimum commitment is required.

Modifiers

These are additional rules applied on top of the rate types within a pricing method. These are normally optional and can be skipped but it adds more control towards rates, if required.

• Minimum Charge: Acts as a floor - if the base charge is lower than the minimum, the minimum applies. Used for Daily, Weekly, 24hr Variants, Monthly & Flat Monthly rate types.

• Excess Hours Rate: Adds charges if average daily usage based off meter reading exceeds the Max Daily Hours across the Days On Rent. Used for Daily, Weekly, 24hr Variants, Monthly & Flat Monthly rate types.

• Grace Period: Allows a buffer (in minutes) before the extra day is counted to be charged upon off hire. Only used for 24hr rate types. This is configurable in Global Settings.

• Stand Downs: Pauses/discounts billing for agreed non‑charge periods (excludes Flat Monthly rates)

FAQs

How does tier system work for Daily/Weekly & Tiered Pricing Methods?

Tiered Pricing assigns each rate type (Daily, Weekly, Monthly, etc.) its own price and Days On Rent requirement, which determines when that tier becomes eligible. Daily and Weekly rates use the contract’s Charge Days Per Week to work out how the Days On Rent requirement while Tiered Pricing is manually entered.

As the hire continues, the system evaluates each tier that are currently eligible based on the number of days the equipment has been on rent. For each eligible tier, it works out what that tier would cost by converting the rate into a daily‑equivalent value and multiplying it by the tier’s Days On Rent. After comparing these totals, the system selects the tier that produces the lower cost and applies that rate to the current day of the hire.

This calculation is performed at each invoice, taking into account the amount previously billed so the customer is always charged using the correct tier for their current Days On Rent. If the hire has continued beyond what was covered on the last invoice, the system reassesses the applicable tier and compares the newly‑calculated charge with what has already been billed. If the newer tier results in a lower total, the system simply charges the difference.

Example:

How does Minimum Hours Per Month Rate Type work?

Minimum Hours Per Month is a rate type designed to ensure a consistent minimum monthly charge while still accurately billing for any additional usage. It uses four values - the Meter Reading, the Hourly Rental Rate, the Minimum Hours Per Month, and the Default Charge Hours Per Day (set in Global Settings)

The system automatically accrues the Default Charge Hours Per Day until the accumulated total reaches the Minimum Hours Per Month, with the calculation also adjusting proportionally based on how far through the month the hire has progressed. Once the minimum threshold is met, it remains fixed for the rest of the month and resets to cunt again when the next month begins.

Alongside this automatic accrual, the system also evaluates the Meter Reading taken at any point during the hire. If the recorded usage exceeds the Minimum Hours Per Month, the system charges the additional hours at the standard hourly rate. It also tracks the meter reading proportionally across the entire hire, increasing the minimum hour threshold as each month passes - so if a meter reading is taken later on the hire instead, it is compared against the minimum usage that should have accumulated by that point in time. If the recorded usage exceeds that proportional minimum, the system charges the additional hours at the Hourly Rental Rate.

This ensures that the customer is billed fairly for both minimum expected usage across all months and any genuine excess.

How does Excess Hours Rate work?

Each hire includes a set number of hours per day (for example, 8 hours) called Max Daily Hours. Over the course of the hire, these set hours are calculated against the number of billable days (for example, 15 day hire will clock in at 120 hours max).

Once the hire ends, meter reading needs to be entered on Return. If the meter reading usage entered is higher than the allowed limit, the extra hours are billed separately at the Excess Hours Rate.

This ensures that customers who use equipment more intensively pay fairly for the additional wear, fuel, or operator time, while those who stay within the limit are only charged the standard rate.

What are Rental Rate Variations?

Rental Rate Variations allow you to define multiple versions of the same Pricing Method and/or Modifiers within a Rental Rate. This means an Equipment Class, Model, or Number can have several daily rate options, each representing a different pricing variation e.g. standard, discounted, seasonal, or contract‑specific rates.

These variations are first set up on Rental Rates. When selecting a variation on a contract or quote, the system will display all variations for that equipment so you can choose the most appropriate one.

How does Stand Down affect the charges?

Stand downs work by converting the discount percentage into a proportional reduction of chargeable days. When a stand down is applied, the system reduces the total Days On Rent by that proportional amount and then recalculates the charges based on the adjusted total days. All normal tiered‑rate rules still apply, so the system continues to follow daily, weekly, or monthly thresholds exactly as it would without a stand down.

A common point of confusion is why a stand down doesn’t reduce the charge when the hire hasn’t yet completed a weekly cycle. Even if the adjusted billable days fall below the weekly threshold, the system will still charge the weekly rate once the hire has entered that tier. The stand down isn’t lost - it simply doesn’t affect the charge until the full weekly period has been completed. Once the hire moves past that weekly cycle, the stand‑down adjustment is applied correctly within the next billing period.

How to set Floor Rates and Request Approval

Floor rates are used to prevent undercharging by enforcing a minimum allowable rate for equipment. These are first configured within the Rental Rates configuration. Once floor rates are set and assigned to the appropriate customer, the system will validate equipment pricing during adding details on the rental contract

If a user attempts to enter an equipment rate below the defined floor rate on a rental contract, the system will block the entry and display an error message.

To override this restriction, users can initiate a discount approval request to another user with the permission that will not be blocked.

• Navigate to the Options menu within the Rental Contract.

• Select Request Discount Approval.

• Choose a user with permission to approve discounts.

• Provide a description explaining the reason for the request.

Submitted requests are recorded under the Discount Requests tab on the rental contract, allowing teams to track, review, and manage all active and historical discount approvals.