Prorated Rent for Tenants

Prorated Rent for Tenant

It is a normal situation wherein tenants sometimes decide to move in or out in the middle of the month due to different reasons. For some landlords, you want their tenants to move in as early as possible to avoid vacancy in your rental property.

But some tenants may not want to be charged in full month rent if they move-in in the middle of the month. They will appreciate if you can charge them less since they only stayed a portion of the month. And so because of this prorated can then be applied.

What is Prorated Rent?

Prorated rent is the amount of rent a landlord charge their tenant if their tenant occupied the unit for less than the entire month period.

How to Calculate the Prorated Rent?

Prorated rent amount can be calculated by the number of days in a year or number of days in a month. Daily rent amount multiplied by the number of days the tenant lives in the property. An example is if a tenant will move in on the month of May that has 31 days. The number of days in the month of May is 31 days, so it should be calculated as: Monthly rent is $1,500 / 31 days for the month of May = $48.38 is the daily rent amount. If the tenant is moving in on the 15^th day of May, it should be calculated as $48.38 x 15 days = $725.80 is the prorated rent for the month of May.

If a tenant is moving out before the end of the month, you may want to ask your landlord for a prorated rent. Some landlords will offer prorated rent when you move out before the end of the month. But remember that there is a 30 days’ notice that a tenant should provide to the landlord before you move out. Landlords use the 30 days notice to market their property and look for a new tenant, and that doesn't begin until the 1^st of the month. And if you fail to send your landlord notice before you leave, some landlord may find it unacceptable and might not consider your request for a prorated rent, rather, might cause more problems.

Proration of rent is one of the possible good practices for landlords. It will provide a great service to your tenants. But make sure to collect the first full month's rent and security deposit first. This will ensure that your tenants have enough funds to cover the payment. 

You may check on your state if proration of rent is required. It may depend on the state. In most jurisdictions, proration of rent is not required by law before you move out. However, some landlord requires a first full month's rent then will prorate the second month.