How to Prorate a Lease
Rent payments are made in accordance with the amount set forth in your lease agreement. Tenants are expected to pay the full rent each month the property is occupied. However, there are exceptions to this rule. If a tenant occupies the property less than a month, it is your responsibility to prorate the rent payment for the partial month. Prorating the lease means finding out how much the monthly rent equals each day and charging the tenant for the number of days he occupies the property.
Instructions
- 1
Divide the amount of the monthly rent by the number of days in the month. For example, if a month has 30 days, the rent payment should be divided by 30. Some months have a higher day rate than others.
2Multiply the day rate by the number of days the tenant plans to occupy the property. For example, if the tenant moves out on the 7th of the month, multiply the day rate by 7 to get your prorated lease amount.
3Subtract the security deposit if the prorated amount is the final payment. Generally, prorated lease payments are made during the first and final month if the tenant does not move in on the first day of the month. A refundable security deposit is usually paid to cover damages to the property. In the final month, the tenant is owed this money if the property is in the same condition as move-in. Preparing the security deposit is an easy way to keep track of your finances especially during a short month.
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