Hi I was wondering what some of you do in terms of setting a rent due date. I mean, I have a lease that is going to start on the 14th of March. It is a 12 month lease. I was thinking of having the tenant pay me the prorated amount for 3/1-3/31. then starting on 4/1 they would pay me the full monthly amount. Am I being too complex or should I just make rent due based on the start of the lease and have them pay me the full monthly rent on the 14th of every month. Part of me just likes collecting rent on the first of the month, but the other part of me says maybe im just making things more complex.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
11y
Hi,
I like all my rent due at the same time (due on the 1st, late on the 6th). In most cases they don't start their lease on the first, so I prorate the SECOND month based on first month's occupancy days. That way, I am collecting more at move in just in case they turn out to be flakes. I haven't had a problem yet but I have only been a landlord for 2 years.
Rent can be made to start whenever you would like it to begin. There are arguments on both camps, but I like to start might on the 1st of the month as most tenants understand that concept of "month". Give a pro rated invoice if you must, but when I do, I try to extract a couple of extra months to get the expiration to a month that is in my favor.
Investor · Hagerstown, MD · Member since 2014 · 299 posts · 140 votes
11y
Yes, I would prorate the first month, and make all subsequent rents due on the first of each month. Then the lease would expire on 3/31/2016 if you're going for a 12 month lease.
We started a lease mid-month once to aline with the tenant's payroll. Our bookkeeper was not impressed with us. While one lease out of step with the rest of our holdings made marginally more work for her, she moved quickly to ensure this irregularity was not going to become a regular occurrence.
Having all your leases synchronised to the first day of the month will make life easier for you ... and likely your tenants.
Contractor · Valparaiso , IN · Member since 2013 · 604 posts · 327 votes
11y
IM in the same camp. Pro rate the first month based on move in date. Rent is always due on the 1st and late on the 5th. This way its easy for tenants to remember the due date. More importantly it keeps my book work to a minimum once a month.
Investor · Latonia, KY · Member since 2012 · 107 posts · 50 votes
11y
Like everyone else said, prorate and make the rent due on the first. Plus, if you have a loan payment, it's probably due around the 15th and you should have the rent by then.
Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
11y
Prorate from start of lease until the end of that particular month. End the lease the 1st of that month for the following year, which will bring you on track with other tenants.
Investor · SE, MI · Member since 2013 · 1k+ posts · 461 votes
11y
Hi,
I like all my rent due at the same time (due on the 1st, late on the 6th). In most cases they don't start their lease on the first, so I prorate the SECOND month based on first month's occupancy days. That way, I am collecting more at move in just in case they turn out to be flakes. I haven't had a problem yet but I have only been a landlord for 2 years.
I like all my rent due at the same time (due on the 1st, late on the 6th). In most cases they don't start their lease on the first, so I prorate the SECOND month based on first month's occupancy days. That way, I am collecting more at move in just in case they turn out to be flakes. I haven't had a problem yet but I have only been a landlord for 2 years.
Kelly
It is slightly more complicated in the lease initially, but it makes a lot of sense to do it this way. If you are financing, having the rent lined up with the mortgage payment makes things easier. It also makes it easier to scale up(book keeping or collection) if you have everything as standard as possible.
Adding a few weeks at the end to get to the end of the month, isn't a bad idea either. It probably ends up adding a month at the very least to their occupancy. If they want to move out mid-month on a month-to-month, they just have to give required notice and pay pro-rated rent at the beginning of the final month.