Updated about 2 years ago on . Most recent reply
Pro-rated rent calculation for MTR
Hello,
How do we handle monthly payment for tenants that move in towards the end of the months like for example on 21st of the month and then they are moving out on 24th of the month 6 months later? Do we just make them pay the pro-rated rent from 21st until the end of the month or are they paying for the full month as soon as they move in plus the security deposit? Trying to figure out the verbiage in our contract where it says "The remainder shall be payable in equal monthly installments of blank amount each, due on or before the blank day of each and every calendar month throughout the lease Term, commencing on the blank day." Any thoughts? suggestions?
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#2 Medium-Term Rentals Contributor
- Real Estate Consultant
- Reston, VA
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#2 Medium-Term Rentals Contributor
- Real Estate Consultant
- Reston, VA
I always prorate my rent and then collect the first full installment on the first of the month for stays longer than 2 months.
Another thing to think about is how you are collecting rent. Most of the rent collection tools I use are set up to collect rent on the 1st of the month and automatically prorate for rent collected before the 1st of the month.