Prorate Rent

Prorated rent reflects the rent payment due for a partial month of occupancy, typically when the rent payment date is after the first of the month, or when the rent payment is for any period of less than a full month. While some renters will agree to pay the full month’s rent, most will ask for prorated rent, especially if the reason they’re moving into an apartment mid-month is the result of the landlord’s timetable. The power to choose to prorate or not rests with the landlord, but the renter has the option to negotiate and confirm the method of calculated prorated rent.

Steps

Calculating the Number of Days in a Month

  1. Calculate daily rent. Total monthly rent is the amount of rent charged every month that the tenant will occupy the apartment, condo or house for a full month. Divide the total monthly rent amount by the number of days in the month to determine a daily rent rate.
    • Use the current month. January, March, May, July, August, October and December have 31 days. April, June, September and November have 30 days. February has 28 days except for leap years, when it has 29 days.
    • For example, in September, if you were paying $900 a month, you would divide 900 by 30 since September has 30 days. This equals a daily rent rate of $30.
  2. Calculate prorated rent. Multiply this daily rent rate by the total number of occupancy days to determine the prorated rent amount.[1]
    • Number of occupancy days is how many days you will be renting the apartment before the first day of the next month begins.[2]
    • For example, if you moved in on September 20, your number of occupancy days is 11 (just like hotels book rooms, you include the day you move in). 11 days x 30$/day = 330$ total.
    • ANSWER = [(rent for a month) / 30] x # of days you’re staying

Calculating the Number of Days in a Year

  1. Calculate yearly rent. This is the most appropriate option when dealing with a year long lease. Multiply the monthly rent amount by 12 in order to get the total yearly rent amount.
    • Monthly rent is the amount of rent charged every month that the tenant will occupy the apartment, condo or house a full month.
    • For example, a tenant might pay $900 per month. $900 x 12 = $10,800 in rent per year.
  2. Calculate daily rent. Divide the total yearly rent amount by 365 (the number of days in the year) in order to get the daily prorated rent amount.
    • For example, if your yearly rent amount is 10,800$, 10,8000/365=29.5$ in rent per day.
    • For yearly rent, it does not matter which month you are currently in.
  3. Calculate prorated rent. Multiply the daily prorated rent amount by the number of occupancy days remaining in the month to get the prorated rent amount.[1]
    • Number of occupancy days is how many days you will be renting the apartment before the first day of the next month begins.[2]
    • For example, if you moved in on September 20, your number of occupancy days is 11 (just like hotels book rooms, you include the day you move in). 11 days x 29.5$/day = 324.50$ total.
    • ANSWER = [(rent for a year) / 365] x # of days you’re staying

Calculating Rent Including Utilities

  1. Calculate total monthly or yearly utilities. Depending on if you are going to use either the “days in a year” or “days in a month” method to calculate your prorated rent amount, determine the respective cost of your utilities.
    • For example, your utilities might be 50$/month, or 600$/year.
  2. Add utilities cost to rent cost. For whatever method you are using, add the calculated utility cost to the calculated rent cost to create a sum of total money you owe the landlord per month, or per year. Include here other landlord paid/reimbursed expenses if applicable.
    • In mathematical format: rent rate + utility rate = total $$ you owe the landlord
    • For example, if monthly rent is 900$ and monthly utilities is 50$, then your total sum of money owed to the landlord each month is 950$.
    • For example, If yearly rent is 10,800$ and yearly utilities is $600, then you owe the landlord $11,400 each year.
  3. Calculate prorated rent total. Use either the “days in a year” or “days in a month” method to calculate your prorated rent amount. In your equations, replace your total monthly or yearly rent amount with this calculated total sum of rent and utilities.[1]
    • For monthly rent: ANSWER = [(rent + utilities for a month) / 31] x # of days you’re staying
    • For yearly rent: ANSWER = [(rent + utilities for a year) / 365] x # of days you’re staying

Tips

  • Get your daily prorated rental agreement, and all formal agreements, in writing.
  • Security deposits are negotiable and not necessarily related to a single month. Security deposit is related to the landlord's concept of risk s/he is assuming with tenant. Landlords typically collect a full month’s rent in advance from every new tenant.
  • Some landlords do not prorate but require for you to pay the full month’s rent regardless of when you move in or out.
  • Some landlords ask for rent on the first of the month; others ask for it every month on the day you moved in. For example, if you started paying rent on September 20, your landlord might ask for rent every 20th of each month.
  • Landlords will offer prorated rental agreements to attract additional tenants who are in need of immediate housing, and cannot wait until the beginning of the next month.
  • Whoever is calculating prorated rent should be able to explain how he or she got that number.

Related Articles

Sources and Citations

  1. ↑ 1.0 1.1 1.2 https://www.landlordology.com/calculate-prorated-rent/
  2. ↑ 2.0 2.1 http://www.contractstandards.com/clauses/rent_jd
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