Great advice is needed.

4 Replies

Hey, so I have someone who's interested in moving in on the 19th of this month. Do I prorate the rent or what do I do?

Originally posted by @Delmas Edwards :

Hey, so I have someone who's interested in moving in on the 19th of this month. Do I prorate the rent or what do I do?

Sounds like you are new to property management. First, learn and understand the landlord-tenant laws for your jurisdiction. Make sure you have a great rental agreement.

Best practice is to prorate the rent and establish rent to be due in advance on the first of each month. You have some options:

1. Upon move-in you collect the entire security deposit and one month rent, then prorate the second month rent and collect it 30 days later. (This is common.)

2. Upon move-in you collect the entire security deposit and the prorated rent for the first month, then you will collect full rent for the second month on the first day of the next month. (This is what we typically do if the tenant moves in during the first half of the month.)

3. Upon move-in you collect the entire security deposit and the prorated rent for the first month and the full rent for the second month. (This is what we typically do if the tenant moves in during the second half of the month.)

If they seem to be a great tenant prospect and I would not have collected rent for that period otherwise I'd let it go, but that's just me. I've benefitted on the other end too many times to be greedy: tenants moving out before the end of the month allowing me to freshen and rent without losing a month.

I charge a full months rent for the first month.   10/19 - 11/18, then I prorate November, which is due on the first.  This way, you dont get someone moving in paying just a partial month and then not paying.

ALso collect a full security depsoit.  If they can't pay it, they are running too close to not being able to pay rent. No payments on deposits. 

Best of luck!

Best way to write up a lease with a tenant that's moving in mid month is to charge the portion of rent for remainder of month due on move in.. and then full rent payment due on the 1st.. Legally to do as @Christine Kankowski , is not what  your lease would read if rent is due on the 1st for remainder of lease. 

and lease dates should reflect that they are taking occupancy on the mid month date..Start lease on Oct 18th, 

I  write in lease a notation,, prorated rent from Oct 18 2017 to Oct 31, 2017 amount of $200.00 due on Oct 18th.

You divide rent by days in month,, and calculate how many days they are going to live there.

If you choose to let them live in apartment FREE for any portion of early move in month,, then CONCESSION is listed. but you List as "Rent Concession Oct 18- Oct 31, 2017" 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.