First Month's Rent...Partial or Full?

Question

How do you handle a new tenant's first month's rent when they move in during the middle of a month? Do you just accept the partial rent as the first month's rent or do you make them pay a full month's rent and prorate the second month's rent?

Rob K. · Answer

I always collect a full months rent and then pro-rate the second month based on their move in date.

Scott W. · Answer

i had a tenant move in on the 30th. they paid for that day plus the next month to make it simpler for all.

if i had someone move in on the 7th, I would have them pay for a full month into the 2nd month and then pro-rate the 2nd month.

Account Closed · Answer

I always pro-rated my rents because I wanted all my rents to be due on the 1st of the month.  With 40 rental units I didn't want to have to go to court every day of the month due to various rental due dates.  So it was crucial for me to pro-rate rents so that if and when I did have to go to court for non payment of rent, that I could do them all at one time.  (I always handled my own cases and never lost a case  in all those years and my properties were in Detroit!  :0))

If you hire an attorney, there are some that will give you a discount for having several tenants at one time to take care of verses just one here and there.

Nancy Neville

Michaela G. · Answer

It also depends on the type of rental.

Mine are low-income and people simply don't have savings. They're scraping things together to get deposit and first month's rent. If I were to say, well, I just want people that have enough in their savings account, I wouldn't have tenants.  Or if I tried to get a month's deposit and first month's rent, when it's the 15th, many of them would have difficulties coming up with that much.

In higher income neighborhoods it'll be easier for people to have enough money

John Knappmann · Answer

I agree with your reasoning, Jon.

Bill S. · Answer

Ok, assuming that I'm not running some rent special, I agree with the concept of 1 month and SD rather than partial months rent. In practice, I don't want to have to fool with the 2nd month and how much is it and remembering to collect it. The fact is, I don't give any free rent for a partial month (unless I advertise a move-in special), tenants don't appreciate it and don't remember it at the end of the lease. It's giving money away and making for my kids to be skinny. I screen pretty well and my tenants tend to be fairly credit worthy so my policy has been anything before the 20th gets prorated. Anything after the 20th is that plus next month's rent.

George P. · Answer

in my case it's different because i use an agent.

so, i keep the security deposit, the agent gets the first month rent. i start getting rent from month 2.

Jon Holdman · Answer

The tenants must provide one full months rent and the full deposit in cash or equivalent in exchange for the keys.  Prorate the next month, making it due on the 1st.  The total the tenant is out between the move in and the 1st is the same as if you prorated up front.  But this avoids a tenant who gives you a week's rent then forces a lengthy eviction.

Now, like others, I'll give a few days free.  If the first is, say, during the next week and the property is vacant, I'll often sign the lease on Saturday.  That gives them a few days to move in and costs me nothing.  Plus less risk of vandalism with someone there.

Mike S. · Answer

My lease starts at the first of the month, so essentially I am allowing early move in.  By default, it becomes a 12 month + however many days lease.

Trevor Schumann · Answer

How would you incorporate a partial month into a 12 month lease? Would the final month also be pro-rated and the lease end mid-month, or would it essentially be a 12 & 1/2 month lease?

First Month's Rent...Partial or Full?

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