Posted on | July 21, 2012 | No Comments
Why do I need to prorate rent?
Rent proration is used to calculate the rent amount due for any month that a tenant does not stay for the entire month.
How do I calculate prorated rent?
In order to calculate the prorated rent amount you must take the total rent due, divide it by the number of days in the month to determine a daily rent amount. You then multiply the daily rent amount by the number of days the tenant will be occupying the property to generate the prorated amount for the partial month.
By Hand-July 21st Move In Date-Rent $800.00
31 days in July, lease commencement is the 21st, so calculate 11 days rent.
The days in July cost $283.87 and $516.13 goes towards August rent.
Test this calculation above:
Monthly Rent: $800
Move in Date: 7/21/2012
Bill On: 1