Prorated Rent Calculator
In a perfect world, renters start their lease — and make their rent payment — on the first day of the month and move out on the last day of the month. But there may come a time when your tenant needs to move in or out of your rental outside of this typical cycle. If this applies to you, understanding how to prorate rent can be beneficial for you and your tenant. Prorating rent encourages renters to move in sooner, thereby helping you fill vacancies faster and earn more income on your investment. Boost your rapport with your tenant by having a flexible and fair prorated rent policy.
Prorated rent calculator
Calculate your tenant's prorated rent.
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What is prorated rent?
Prorated rent is the amount a landlord charges a tenant when they are occupying the rental for only part of the month. Most billing cycles start on the first of the month. If your renter wants to move in a few days before or after the first, or they plan to move out before their month’s billing cycle is over, you may want to consider prorating your rent.
How to calculate prorated rent
To prorate rent, first calculate the amount your tenant pays in rent per day for the month in question. Take the total monthly rent and divide it by the total number of days in the month to get the daily rent amount. Multiply the daily rent amount by the number of days the tenant will be occupying the rental for the month to calculate the prorated monthly rent.
$1,200 (rent) / 30 (days) = $40 (daily rent amount)
$40 (daily rent) x 21 (days) = $840 (prorated monthly rent)
Once you’ve determined your prorated rent, you can start collecting rent payments and managing tenants online with Rental Manager.
Frequently asked questions
- Do landlords have to prorate rent?
Landlords are not required to prorate rent unless it is stated in the lease. However, it is a common practice to prorate rent to provide more flexibility for a tenant’s moving date, and it means you might be able to reduce the amount of time your rental is vacant.
In other words, if a tenant is ready to move into your apartment halfway through the month, prorated rent might offer financial incentive for your tenant to do so, and you don’t have to deal with a two-week vacancy.
- When should rent be prorated?
Prorate rent when a tenant moves in on a day other than the first of the month to reflect the actual number of days the tenant will be occupying the rental for the month. You can also prorate rent when a tenant is moving out on a day other than the last day of the month.
- How do I prorate rent when my tenant is moving out?
To calculate prorated rent when a tenant is moving out, you can use the same formula for calculating prorated rent when moving in. Take the monthly rent and divide it by the number of days in the month to determine the daily rent. Then multiply the daily rent by the number of days the tenant owes rent for the month. The total is your prorated rent.
- Should I prorate my tenant’s rent?
Your decision to prorate rent can depend on a number of circumstances, but setting some rules ahead of time can be helpful for navigating more challenging requests, such as when a tenant needs to break a lease or is dealing with financial hardship. Many landlords add a policy for prorated rent to their lease that includes clear terms for things like how much notice the tenant should give if they need to move out early.
Remember, it’s up to you whether prorating rent feels like the right thing to do for your tenant’s individual situation, but creating opportunities for flexibility can help with retention and your renters’ overall satisfaction.
