How to Calculate Pro-Rated Rent

Pro-rated rent is the amount of rent due when a tenant moves in or out on a day other than the first or last day of the month. It ensures tenants only pay for the days they occupy the rental property. This guide will help you understand how to calculate pro-rated rent accurately.

When to Calculate Pro-Rated Rent

• Move-In Mid-Month: When a tenant moves in after the first day of the month.
• Move-Out Mid-Month: When a tenant moves out before the last day of the month.

Steps to Calculate Pro-Rated Rent

1. Determine the Monthly Rent:

   • Identify the total monthly rent for the property.
   • Example: The monthly rent is $1,200.

2. Calculate the Daily Rent:

   • Divide the monthly rent by the number of days in the month.​

3. Count the Number of Days the Tenant Will Occupy the Property:

   • Determine the start and end date of the tenant's occupancy within the month.
   • Example: If a tenant moves in on the 10th and there are 30 days in the month, they will occupy the property for 21 days (30 - 10 + 1).

4. Calculate the Pro-Rated Rent:

   • Multiply the daily rent by the number of days the tenant will occupy the property.

Example Calculations

Example 1: Move-In Mid-Month

• Monthly Rent: $1,200
• Move-In Date: 10th of a 30-day month
• Daily Rent: $$40$
• Number of Days Occupied:  $30-10+1=21$
• Pro-Rated Rent: $40×21 = $840

Example 2: Move-Out Mid-Month

• Monthly Rent: $1,500
• Move-Out Date: 20th of a 31-day month
• Daily Rent: $1500/31 days = $48.39
• Number of Days Occupied: 20 
• Pro-Rated Rent: $48.39 × 20 days = $967.80 

Important Notes

• Different Month Lengths: The number of days in a month can vary (28, 29, 30, or 31 days). Ensure you use the correct number of days for accurate calculations.
• Leap Year Considerations: In a leap year, February has 29 days, which should be considered in the calculation.

FAQs

Q: Is pro-rated rent applicable if I move in on the 1st of the month? A: No, pro-rated rent is only applicable if you move in or out on any day other than the first or last day of the month.

Q: Can pro-rated rent include utilities? A: It depends on your lease agreement. If utilities are included in the monthly rent, they will be pro-rated as part of the total rent.

Q: How should I handle pro-rated rent if the move-in/move-out spans two different months? A: Calculate the pro-rated rent separately for each month based on the days occupied in each month.

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