How To Calculate Prorated Rent
When renting a property, the ideal conditions for calculating the rent for the landlord are when the tenant settles on the first day of the month and leaves on the last. However, tenants packing up and moving out in the middle of the month is becoming quite normal. In that case, you need to calculate a prorated rent, instead of a full monthly rent. The amount of the prorated rent should only include the period of time during which the tenant had lived in your property. In this case, our prorated rent calculator will assist you in calculating the rent for the required period.
What is prorated rent?
The prorated rent is the amount of rent that the tenant has to pay if they have lived in your property for only a certain part of the agreed period. In other words, the tenant doesn’t pay the rent for the whole month, but a prorated rent calculation based on the number of days during which the tenant will actually be on lease.
How to calculate prorated rent?
To determine the rent for a period of time a tenant has spent on a property for less than one month, you must first divide the full monthly rent by the number of days in that month. This way you will determine the daily rental rate. Then this amount must be multiplied by the number of days during which the tenant occupied your property.
This is how to calculate prorated rent:
- Total rent ÷ days in the month = daily rental rate
- Multiply daily rent amount by the number of days occupied
- The result is the total rent that is due for that month.
Other ways of how to calculate prorated rent
Another method of calculating prorated rent involves the use of annual rent, which must be divided by the number of days in the year. The average daily rental rate determined in this way can be used for the prorated rent in any month of the year.
In some states, it is required to use this measurement to calculate the prorated rent, as a “monthly banker”. This method requires using a 30 day month as a standard, regardless of how many days a particular month has.
Factors to consider in the prorated rent calculation
When calculating the prorated rent, it is necessary to take into account the factors that may affect it. Some of which are:
- Number of days per month
Months with 30 days: September, April, June and November
Months with 31 days: January, March, May, July, August, October and December
A month with 28/29 days: February
- Is this a leap year?
- On which day of the month do you charge?
- How many days in the first month?
- How many days in the second month?
- What is the cost per day for the first month?
- What is the cost for the second month?
- How many paid days in the first month?
- How many paid days in the second month?
- When does your lease officially start / end?