What Is Prorated Rent and How Do I Get It?
It is not uncommon for tenants to need to move in the middle of the month, week, or even three weeks in a month, and this can happen for a variety of reasons. The most common scenario: You’ve finally found the perfect new place, but for some reason it won’t be ready to move in until the 5th, 15th, or maybe 21st of the month. When you vacate a rental on a day other than the last of the month, you may be eligible for prorated rent. Here, we’ll define the prorated rent, how it works, and how to calculate the prorated rent when moving mid-month.
What is the prorated rent?
Prorated rent allows a tenant to pay for a partial month that does not fit into a regular billing cycle. Most landlords start rental cycles at the start of each month, but sometimes tenants aren’t able to move out exactly on the last day of the month. Sometimes new leases start in the middle of the month, or you are looking for a place on a very short notice. It is common for students to set moving dates that coincide with the start of a school year or a new job. In any of these circumstances and more, most people want their rent to be prorated.
Simply put, prorated rent refers to rent proportional to the days a dwelling is occupied.
How it works
If a tenant occupies a unit for 15 days in January, with prorated rent, they only pay 15 days that month. Occasionally, a landlord may ask a tenant to move out before the end of the month so that new tenants can move in, or a tenant may need to stay in the unit for an additional week in the month following the end of the lease. However, as mentioned above, it is often the tenant who needs a special early departure date. While most landlords are willing – even enthusiastic – to prorate rent when a tenant moves in the middle of the month, some may not be as excited about doing it for a move. The best thing you can do to avoid problems with this is, of course, to check with the landlord before you move in or just ahead of time, and put things in writing.
When to ask for prorated rent
In most places, prorated rent is not actually required by law. If you plan to move in or vacate your rental after or before the first day of the month, the landlord may offer prorated rent for those days. You will want to pay attention to the details and / or do your research, as there might be details in your rental agreement regarding the circumstances under which prorated rent is and is not being applied. There may even be such laws in your area. If neither is the case, you can request a prorated price.
When asking for pro-rated pricing, you should always consider what’s right for everyone. If your lease allows you to stay in your place until the end of the month and you want to leave earlier, if you come to that decision on short notice, it might be better to pay for the full month. Then again, if you’ve given plenty of notice and the landlord is able to find new tenants to move in early, it’s fair to have your rent prorated for the partial month. Chances are, new tenants will pay a pro-rata price for the extra days.
While there are no general tenant rights that relate to prorated rent, local or state laws could cover specific prorated rental circumstances.
How to ask for prorated rent
Remember that asking for a prorated rate does not guarantee that you will get it. If this is not covered in your lease or by local laws, the prorated rent is at the discretion of the landlord. That’s why it’s always good (when possible) to have a conversation about prorating policies before signing a lease. If you want to charge prorated rent, be polite and submit your request in writing.
How much should you pay?
If your landlord agrees to prorate your rent, you will need to confirm an amount. Determining the prorated rent is actually quite simple and you can always use our prorated rent calculator. The first thing to do is figure out how much rent you are paying per day. There are a number of ways you and your landlord can choose.
You can calculate your rent per day using one of these elements:
- Days of the current month
- Days in the month of a banker
- Days in an average month
- Days in a year
Here are examples using $ 1200 as the monthly rent amount:
If you calculate the daily rent using August as the current month, you will divide $ 1,200 by 31, which is $ 38.70 per day.
If you calculate using the average month method, you will divide $ 1,200 by 30.42, which comes to $ 39.44 per day.
If you calculate the daily rent using a banker’s month, you would divide $ 1,200 by 30, which will be a nice amount of about $ 40 per day.
If you use the number of days in a year (the most accurate calculation), you first multiply $ 1,200 x 12. This number – $ 14,400 – represents your annual rent, which should then be divided by 365, or the number of days in the average year. This represents $ 14,400 / 365, or $ 39.45.
Once you’ve calculated your daily rent, simply multiply it by the number of days the rental was occupied to get your prorated price for the month.
Life doesn’t always fit into billing cycles, and prorated rent can save tenants a lot of money. Fortunately, the pro rata of the rent during a move is a little less complex than for a move.