So we cannot locate in The Book on Managing Rental Properties how to handle a tenant moving in a home in the middle of the month. Do we pro-rate and only charge for the remaining days of the month? Thanks!
Here at Connecticut Property Management we pro-rate the rent depending on the number of days left in the month. If it is 10 or less, we will also go ahead and collect the next month's rent at lease signing as well. We don't want to give the impression that we are taking in tenants with "no money upfront". In my experience, that attracts the wrong type of tenants.
Pro rating allows us to keep our systems in place - EVERYONE'S rent is due on the 1st...no need to remember who is who and what their due date is while collecting rents.
IMHO best practice is to collect a FULL months rent (and full deposit, both in cash or equivalent) at lease signing. Pro-rate the next month. So, if they move in on the 10th, they pay a full months rent, then one third of a month on the first. The risk with pro-rating is that you end up collecting only a partial month rent from a professional tenant and then have to do an eviction.
Prorate then for the months rent. Price per month divided by days in month. Multiply by the number of days they will be in unit before the next first of the month.