How to Calculate Prorated Rent
In some cases, you may have a resident that moves in in the middle of the month or not on the 1st. If this happens you will have to figure out what the prorated rent is.
What is Prorated Rent?
The prorated rent is the amount a landlord charges a tenant when the tenant is occupying the rental for a partial term. This usually occurs when a tenant moves into the unit during the month on not on the first. For example, if the tenant moves in on the 10th of the month, the landlord will have to prorate the rent as to not charge the tenant for the fist 9 days since they were not occupying the rental unit.
How to Prorate
The most common way to prorate the rent for any give month is a simple formula. The formula is:
( Mo. rent / # days in Mo. ) * # of days renter is paying for = Prorated Rent
For example, if it is April 2017 and your tenant moved in on the 10th of the month and your rent was $1,200 / MO. This is how much the first month prorated rent would be:
($1,200 / 30) * 21 = $840
This is by far the most accurate way to calculate the prorated amount of rent you should charge for tenants that move in on off days within the month. In the example above, the tenant moved in on the 10th which means they will be living in your rental for 21 days for the month of April.