How to get on first of the month rent schedule

5 Replies

We have listed our first rental and are screening applicants.  My question now is say we sign a lease agreement on the 10th or 15th or 20th of the month, do we pro-rate the first payment then the first full rent payment is due on the first?  Or do we collect the pro-rated amount for feb plus march as the first full month when moving into the unit?  

I'm not a pro so here are my thoughts.  1 it depends on the rent amount and quality of tenant.  Is this a high end unit with high end rent? because if they move in on the 15th and you charge 1 1/2 up front plus security that could be a big nut and hard for some to handle.

If it is near the begining of month I would consider pro rating the days and then first payment due the following first. (move in on the 5th then charge rent for 25 days, first payment on the following first)

If near the end of the month then charge the pro-rated days plus the next months rent.  (move in on the 25th then collect 35 days (5 for moving in and next months rent up front).

It is your decision how you want to it. Pro rate the rent is the easiest method.

One word of caution be aware that in many cases when a tenant is looking or available to move mid month it is often due to them being evicted of doing a mid night run. It is mandatory that you contact present as well as previous landlords. Be very carful in confirming that they are in fact the landlords and not a friend of the tenant posing as the landlord.

In this business there is zero room for trust. Applicants and tenants will lie to landlords without hesitation.

Originally posted by @Glen Whipkins :

We have listed our first rental and are screening applicants.  My question now is say we sign a lease agreement on the 10th or 15th or 20th of the month, do we pro-rate the first payment then the first full rent payment is due on the first?  Or do we collect the pro-rated amount for feb plus march as the first full month when moving into the unit?  

 Throughout my many years of dealing with 1,000's of tenants I have found that the best strategy is to make them pay the full 1st months rent no matter what day of the month they move in on. Then you provide them with a pro rated amount for the 2nd month. This way you ensure nobody moves into your property without paying the 1st full months rent along with the applicable security deposit.

Example.

  • Rent is $750 per month.
  • Rent is due on the 1st.
  • Tenant moves into the property on January 15th.
  • You charge the tenant $750 for January rent, along with a $750 security deposit.
  • February rent is due on February 1st. February rent is $375
  • March rent is due on March 1st. March rent is back to $750 
James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

@james wise thanks, thats exactly what I was needing to know. 

Originally posted by @Glen Whipkins :

@james wise thanks, thats exactly what I was needing to know. 

 Anytime that's what I'm here for. If you need advice on any landlording topics feel free to tag me in the forum & i'll be sure to drop by with some insight.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

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