Prorated rent is a partial rent payment based on the number of days a tenant occupies a property within a billing cycle.
How to Calculate Prorated Rent
To determine the prorated rent amount, use this formula:
Prorated Rent = Daily Rent x Number of Days Occupied
Where:
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Daily Rent = Monthly Rent ÷ Number of Days in the Month
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Number of Days Occupied = The total days the tenant will live in the property within that billing cycle
Step-by-Step Calculation
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Determine the Daily Rent
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Divide the monthly rent by the number of days in that specific month (e.g., 28, 29, 30, or 31 days).
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Multiply by the Number of Days Occupied
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Count how many days the tenant will be in the property for that month.
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Multiply that number by the daily rent.
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Example Calculation
Scenario:
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Monthly rent: $2,500
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Tenant moves in: April 12
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Standard billing cycle: 1st of the month
Step 1: Calculate Daily Rent
April has 30 days, so the daily rent is:
$2,500 ÷ 30 = $83.33
The daily rent is $83.33 per day.
Step 2: Multiply by Days Occupied
The tenant occupies the property from April 12 to April 30, which is 19 days.
$83.33 x 19 = $1,583.33
The prorated rent for April is $1,583.33.
Additional Considerations
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Leap Year Adjustments: February may have 28 or 29 days, affecting the daily rent calculation.
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Proration calculation starts on the first day of occupancy! Many owners and residents forget to count the first day of occupancy when calculating their proration