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What is prorated rent

What is prorated rent

In most instances, renters will plan their moving in and out to fit into an exact timeline. For example, moving out will be planned for the end of the month and moving in planned for the start of a month. However, unexpected events sometimes take place and in the blink of an eye the calendar goes out the window. Unforeseen circumstances can make you move out before the end of the month, or may cause you to delay moving into your new rental home. What is prorated rent? Regardless of the circumstances or details renters need to understand what prorated rent is and how to calculate it.

Prorated rent

In the event that your move in date does not coincide with the start of month, do you have to pay an entire month’s rent? Well, prorated rent will help you avoid spending money on rent when you do not necessarily have to. With this in mind, always try to negotiate prorated rent when you can. Prorated rent can be viewed as a partial rent payment that is consistent with the length of time you are staying in the property. As such, your rent will be calculated based on your move in date and your actual move out date. This method of calculating rent allows landlords to charge tenants fair rental fees. This practice is called prorated as the rent is calculated based on the number of days you occupy the property.

Moving out early

To start with, it is essential to understand that landlords are not obligated to offer you prorated rent rates. The decision to offer prorated rent rates is up to a landlord’s discretion. With this in mind, it is worth discussing the issue of prorated rates with your landlord at the time of signing your lease agreement. If you move out of prior to the end of your lease then it is up to the landlord whether they will offer you prorated rent or not. However, in most instances’ landlords are not inclined to offer tenants prorated rent.

Do your homework

Once you have already committed to a specific period of time landlords may not feel obligated to adjust the amount due. As such, it is essential that you do your homework and find out if your landlord will offer prorated rent. Regardless of whether you intend to move in on the first day of the month or not, find out your landlord’s stance on prorated rent. Moreover, find out if your landlord is open to adding a clause in the lease agreement that covers this point. This ensures that you are only required to pay the prorated amount if you move out earlier in your final month than anticipated.

How to calculate prorated rent

Using the days in a month

Possibly the simplest means by which to calculate prorated rent is to calculate a daily rent. This can be achieved by dividing the total monthly rent by the number of days in a month. You can then multiply the daily rent by the number of days you have occupied the property. This will enable you to come up with the prorated rent.

Using the days in a year

Secondly, you can calculate the prorated rent by using the days in a year. This means you divide the total yearly rent by the number of days in that year. This will help you to determine the daily rent. You can then proceed to calculate the prorated rent. You can do this by multiplying the daily rent by the number of days the property was occupied.

Finally, keep in mind the particular billing cycle that’s applicable in your particular situation. This is because not all landlords use the first day of the month as the commencement of the billing cycle.

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BE FORWARD Real Estate

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