Updated over 1 year ago on . Most recent reply
How to prorate 'First, last, deposit'
Hello BiggerPockets community,
I'm having some confusion with standard practice for 'First, last, deposit' collection in the scenario that the first month will be prorated.
Say for instance: My property has a rent of $1000 monthly with a deposit of one month's rent ($1000), and a targeted lease start of the 15th.
Given that rent will be due on the first of every month, what is the amount which should be collected for the initial 'First, last, deposit'?
If 15/30 days remain for month 1 would it be:
1000 + 1000 +1000 or (1000 x .5) + 1000 +1000



