Pro-rated rent calculation for MTR

[Roman Puzey]

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?

[Jamie Banks]

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. 

[Tamera McKenzie]

We would always prorate the rent for that first partial month. 

[Don Konipol]

Quote from @Roman Puzey:

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?

Here’s what I have done in the past - For leases 3 months or longer there are no partial months, it’s 3 months, 4 months, 5 months, etc.  For 3 months or shorter I prorate.  This might not be the best approach unless it’s a tight rental market. 

[Colleen F.]

@Roman Puzey   Charge them pro-rata for the additional days (this is all assuming notice as required).   I have the lease for these tenants start on the move in day.   I tell them about a week before the last month what the rent will be. You should have a pro-rata statement in the lease..  If they don't give notice then they owe the month. So if lease says 30 days notice, they have to pay for 30 days after they give notice. Now If they started on the 21st June and say I want to stay till 24th August then they owe monthly rent/30 times three days for August. 

[Jamie Banks]

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. 

[Andrew Bosco]

As others have said. pro-rate, but it could be good to ask when the tenant wants to pay. Most landlords says the 1st. I've heard of some wanting the 15th. just depends what you want