Prorating first month rent

13 Replies

Hello, landlord gurus! :)

How do you prorate rent and what do you collect if your rent starts on March 10 for example? rent for 20 days? or 20 days plus 30 days?

what if rent starts on March 20th, would you collect 10 days and 30 days rent?

What if rent starts on March 15th?

You collect Deposit (your month rent and PET deposits) on a day when they sign the lease, but collect the actual RENT on a day when they move in, is that correct?

How much do you usually charge for a PET Deposit? (i have new carpet in 3 bedrooms)

Can you put NON smokers only in your house description, so that will eliminate unwanted tenants, or its a discrimination?

Thank you!!

First of all there is no requirement that the rent is due the first of the month. If they start on the 20th you could have the rent due every month on the 20th. Most landlords do like to have rent due on the first for simplicity.

We collect for the 10 days and then wait until the first of the next month to get the next months rent. If you can get it, getting 10 days plus the next months rent is better.

You can collect the rent and the deposit any time you want. If they will pay it all up front you can do that. We usually charge a "holding deposit" and collect the remaining deposit and 1st months rent before they move in.

Unless there is a local law against it you can discriminate on whether someone is a smoker.

I use the 2nd month proration method. Which means that the tenant pay the full rent on the day they move in regardless of the date, and they pay the prorated amount on the 2nd month. For example, if the lease starts on March 10th and the rent is $1000 per month. The tenant pays the full $1000 on March 10th and pay the prorated amount ($10th-31st): $723 on April 1st ($1000 X 12 Month = $12000 / 365 days= $32.87 X 22 days= $723).  The rent is always due on the 1st of each month and don't recommend the due date based on the move-in date. Check with your state laws for proration methods.

I do exactly what @Ahmad Zein  does. It is best to get a full month of rent when they move in.

I collect the full security deposit when they sign the lease, and get the first month's rent when they move in. I charge an additional $300 security deposit if they have pets. 

Smokers are not a protected class, so you can put in only non-smokers if you like.

Always get a full month up front, don't let someone move in for pennies.  I have my leases all due on the 1st for the most part to make it easy.  I'll prorate the second month or try to get the partial and full month up front if they're moving in late in the month, such as your example of the 20th.  There's no way I'd let them move in for 10 days rent plus security deposit. 

It depends on credit, income, and quality of the tenant.  I allowed a good quality tenant to pay the security deposit and rent for the 15th through the end of this month to move in.  He has plenty of monthly income and low debt.  I'm confident he will pay on the first with no issues. 

We charge a security deposit equal to one month's rent and the pro-rated amount for the remainder of the month to move in. If they come in after the 23rd or so, I expect them to pay the pro-rated amount and the next month at move-in. The 2nd month proration is interesting, but it seems like more details to keep track of. I want to get them in and be on the normal track by the 1st of the next month. It costs so much to move, I think the security deposit and rent for the remainder of the month is plenty. I want them to be able to buy a new shower curtain or other decorations to make it "homey" for them.

I don't believe you can require that they are a non-smoker. You can prohibit smoking on your property. (If you figure out how to enforce that, let me know.)

We had a tenant move in on the 26th of December and we broke it down like this.

$233 last 5 days of month

$1450 January rent 

$1000 deposit 

$250 pet deposit

$2933 due on move in day. They were fine with all of this. If they can't come up with this then we shouldn't be renting to them in the first place. 

I just got approved to rent a town home. And the property management company is charging us first month rent from 2/26-3/26 for a 30 day month. Then prorating second month from the 3/27-3/31. I never had this happen before. I have always been prorated for the first month and then expected to pay the rent first of the month beginning on the first. They say this is a company policy but I have not seen anything on line for long and foster 

Originally posted by @Ahmad Zein :

I use the 2nd month proration method. Which means that the tenant pay the full rent on the day they move in regardless of the date, and they pay the prorated amount on the 2nd month. For example, if the lease starts on March 10th and the rent is $1000 per month. The tenant pays the full $1000 on March 10th and pay the prorated amount ($10th-31st): $723 on April 1st ($1000 X 12 Month = $12000 / 365 days= $32.87 X 22 days= $723).  The rent is always due on the 1st of each month and don't recommend the due date based on the move-in date. Check with your state laws for proration methods.

 ^^Smart

The only thing I add is we also collect all of this money as a bank check, no personal checks ever for security deposit and initial rent. Have had one person offer to pay it all in cash, just told them to get a bank check.

I haven't been able to find them yet. I've been talking with my cousin who does real estate and also rents.  Since we are moving in he last four days of February they are prorating the last five days of March. I get wh it would be done. But I'm expected to pay for more because of the way they are doing it when I moved into other apts and townhomes. They charged rent for the first month but we are getting stuck with an extra day in March. They are asking for a cashiers check which I would too 

I prorate the second month based on the occupancy of the first month- so if they move in halfway through Feb, I get one full month's rent prior to move in (along with security deposit) and they pay for the half month in March, that I am getting as much as possible up front before you hand over the key All rents are due on the first, late if not received by the 5th.  I find the book keeping easier when everything is due at the same time, and I feel that tenants can remember the due date better this way.

For those of us who use the TAR lease the tenant pays one full month upon move in and then pays the prorated rent on the first of the second month.

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