New tenant| Mid Month| Prorate rent?

Question

Team,I was just curious what you do in this case.  I plan to show my property this weekend. Hope to have a tenant ready to move in.

Since it is mid/late in the month what are options/ideas/best practices for this?
Do not 'hold' the house unless they give a non-refundable holding deposit?
Prorate the rent for what's left of month?
Require pro-rated rent and next month's rent, plus security deposit?

Thanks for your help!

Luke H. · Answer

I like the ideas, thank you.  I think I will do this:1 - Partial month(1): Charge full  month's rent & full security deposit

2- Next new full month (2) ,charge whatever pro-rated amount would have been for month (1).

3- After that, month 3 forward, charge full month's rent.

4- Find first qualified applicant, try not to hold the house for anyone.Thanks!

Nicole A. · Answer

If a tenant moves in in the middle of the month, I have always asked for security deposit and FULL first month rent up front for them to be able to sign the lease and get the keys. Then the following month would be prorated. However, some landlords will prorate right up front, so it's your call!

Either order you do it, though, they must pay you full security deposit to be able to sign the lease and get the keys. Without it, do not allow any lease signing/key assigning to happen.

Also, if a good applicant can't move in immediately, I will basically tell them that they are first in line but I must continue to show the unit and if another qualified applicant can move in sooner, they I must give it to that person. I do not take deposit or anything. Sometimes upon hearing this, they can manage to move in sooner than they first thought. ;-)

Steven D. · Answer

If the house is ready definitely start the lease and start charging right away. I have actually found it better to charge a full months rent plus the deposit. Then on the first of the first month they can pay the pro-rated amount. Example:

$1000/month and $1000 deposit

Move in June 15th

Get payment of $2000 ($1000 rent and $1000 deposit) before they get the keys. Then they only owe $500 on July 1st for the pro-rated month of June. Good luck!

Suzette Murray · Answer

Hi @Luke H.,

What I do for the properties I manage is let's say the tenant comes in on the 15th of June and rent is $2,000/month and security it $2,000... You take the 1 months rent and security deposit when they sign the lease. Come July 1st that month is prorated less the 15 days of June. So the tenant would pay $2000/30 days = $66.67/day * 15 days = $1,000.05, making the amount due in July $1,000. Then August 1st and on, the regular payment of $2,000 resumes.

I hope this helps.

~Suzette

Suzette T. · Answer

Cool name! :)))

Steven D. · Answer

Ha took me a while to type my response and @Suzette Born said the same thing.

New tenant| Mid Month| Prorate rent?

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