Prorated rent is the amount you pay for living in a rental for only part of the month. This happens when you move in or out mid-month, and it’s calculated based on the number of days you occupy the rental. Without prorating rent, you would end up paying for the entire month, including days you don’t use the property, which would result in unnecessary expenses.
For example, you might be moving from a small apartment in Charlotte to a bigger rental in Atlanta or a condo in Orlando for work. Moving in on the first of the month is ideal, but it’s not always possible. The apartment might not be ready, and you don’t want to pay a full month’s rent if you aren’t there the whole month. In that case, most landlords will charge you prorated rent. Prorated rent can get confusing sometimes, especially if you’re a new renter. In this apartment guide article, you’ll learn exactly how prorated rent works and how to calculate it yourself.
What does prorated rent mean and how does it work?
You typically pay prorated rent when you need to occupy an apartment for several days outside the standard monthly term of your lease. This usually happens at the beginning or end of a lease when a tenant moves in or out a few days before or after the first of the month. For example, if you move into a new apartment on the 20th of the month, you’ll pay prorated rent for the days you occupy the residence before the first full month of your lease begins.
Similarly, if your lease ends on the 30th or 31st, and you plan to move out on the 5th of the following month, you’ll pay prorated rent for the additional 5 days. Prorated rent ensures you’re only paying for the days you actually live in the apartment, making it fair for both you and your landlord.
It’s important to note that not all landlords are required to offer prorated rent. Before signing a lease, ask your landlord if they’ll adjust the rent if you move in late or move out early, and try to get this agreement in writing. Without it, you might end up paying more than expected.
How to calculate prorated rent
There are two common methods for calculating prorated rent. Both are easy to calculate, so it’s often a matter of which landlords prefer.
1. Use monthly rent and days in the month
You can calculate prorated rent by dividing the monthly rent by the number of days in the month. Then, multiply that number by how many days in that month you’ll be living in the property. This will give you how much you owe for rent.
- Monthly Rent / Days in Month = Daily Rent x Days in Month You Are Paying For = Prorated Rent
For example, if your monthly rent is $1,200, and you move in on the 15th of a 30-day month:
- Divide $1,200 by 30 days to get the daily rent: $1,200 / 30 = $40 per day.
- Multiply the daily rent by the number of days you’ll be living there: $40 x 15 days = $600.
So, your prorated rent for the month would be $600.
2. Use monthly rent and days in the year
The year method works the same as the previous method, except you multiply the month’s rent by 12. Then divide the yearly rental rate by 365 (or 366 if it’s a leap year) to get the daily rate. Multiply that amount by the number of days in the month you’ll be in the apartment.
- Month’s Rent x 12 Monthly Rent / Days in a Year = Daily Rental Rate
- Daily Rental Rate x Days in Month You Are Paying For = Prorated Rent
For example, if your monthly rent is $1,200 and you move in on the 15th of a 30-day month:
- Multiply $1,200 by 12 to get the yearly rent: $1,200 x 12 = $14,400.
- Divide the yearly rent by 365 to get the daily rent: $14,400 / 365 = $39.45 per day.
- Multiply the daily rent by the number of days you’ll be living there: $39.45 x 16 days = $591.75.
So, your prorated rent for the month would be $591.75.
Generally speaking, your landlord chooses which method to use to determine the prorated rent amount. However, some states may dictate what method to use, so research those beforehand so you know which method makes it legally accepted.
How and when to pay your prorated rent
Regardless of which method your landlord uses to determine the prorated amount, make sure it is in writing in the lease agreement before you sign it. Be explicit when detailing the prorated rent amount to avoid any confusion about what you would pay based on the number of days you occupy the property if it’s less than a full month.
It’s also imperative to include when the prorated rent is due. Typically, according to your rental agreement, you need to pay the first month’s rent at the time you move in, regardless of the move-in date. This means the prorated rent would apply to the second month you are in the rental property. In the third month, you would pay the full month’s rent once more. Ensure this payment structure is clearly outlined in the rental agreement.
Also, make sure the lease clearly states when prorated rent is required. This is important if you might move out before the end of the lease and want to pay less than the full month’s rent. Agreeing on prorated rent before signing the lease ensures you won’t have to ask for it later, which could be denied.
Finally, lay out any requirements for requesting prorated rent. For instance, some landlords may want 10 days’ notice if the tenant chooses to invoke this clause. And you may need to put that notice in writing. In fact, some state laws require this. For instance, in Washington State, tenants must provide 20 days’ notice to vacate in writing.
Why or why wouldn’t a landlord prorate rent?
Landlords aren’t often required by law to prorate rent, so it can be difficult to convince them. If your lease doesn’t mention prorated rent, you can’t usually demand it unless local laws support it.
If you plan to move out early, politely ask your landlord in writing to prorate the rent, but be aware they might refuse. For extensions, consider requesting a month-to-month lease to avoid committing to another full year.
Also, if your rental isn’t ready on the agreed move-in date, your landlord should prorate the rent. Check your state’s laws to confirm this requirement.
Prorated rent FAQs
Is a landlord required to prorate rent?
Not all landlords are required to offer prorated rent. It often depends on local laws and the terms of the lease agreement. It’s best to ask the landlord and get any agreement in writing.
Can prorated rent be negotiated?
Yes, tenants can negotiate prorated rent with their landlord. It’s advisable to discuss this before signing the lease agreement.
Does prorated rent include utilities and other fees?
Prorated rent typically covers only the base rent amount. Any utilities or additional fees are usually handled separately and may not be prorated.
What if the landlord refuses to prorate rent?
If a landlord refuses to prorate rent, review the lease agreement and local rental laws. You may need to negotiate or seek legal advice if you believe prorating is justified.
Is prorated rent mandatory?
Prorated rent is not always mandatory and depends on local laws and the lease agreement. Some landlords include prorated rent terms in the lease, while others do not. Always discuss this with your landlord before signing the lease.
What are my rights as a tenant?
- Being charged prorated rent when moving in or out mid-month.
- Receiving accurate calculations for prorated rent.
- Getting a written explanation from your landlord on how the prorated rent is calculated.
- Disputing the calculation if you believe it is incorrect.
- Being informed of any changes to the prorated rent terms in your lease agreement.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.