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What is prorated rent?
Prorated rent is a partial month's rent. You charge it when a tenant moves in or out partway through the month, so they only pay for the days they actually have the unit.
In a little more detail
Most leases charge rent for a full month. When a tenant moves in on the 20th, it doesn't feel fair to charge them for the whole month, so you charge for the days from the 20th to the end of the month instead.
There are two common ways to work out the daily rate. One divides the monthly rent by the number of days in that month. The other divides a full year's rent by 365. They give slightly different answers, so pick one and write it into your lease.
- Rent is $1,500 a month. The tenant moves in on June 20th. June has 30 days.
- Daily rate: $1,500 ÷ 30 = $50 a day.
- Days in the unit: June 20th to June 30th = 11 days. Prorated rent: 11 × $50 = $550.
Things to watch
- Say in the lease which method you use, so there's no argument later.
- Count the move-in day as a rent day. Most landlords do.
- Some landlords collect the prorated amount plus the next full month at signing. Be clear up front.
Enter the monthly rent and the move-in date, and the Move-In Calculator works out the prorated rent for you.
This is a plain-English explanation, not legal advice. Rules vary by state and city, so check your local law or talk to an attorney before you act on it.
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