How to Calculate Prorated Rent
When shopping for an apartment, you most likely looked for a monthly rental rate that was fair for your finances. However, if you were to move in to a unit during the middle or end of the month, the full rental rate won't make sense for a short duration of the month. This is where prorated rent comes in. We'll tell you how to calculate prorated rent that's fair for both sides.
What is prorated rent
In order to clearly understand how to calculate prorated rent, it's important to know exactly what it is. Prorated rent is the amount that a tenant is charged for the number of days that they occupy a living space. It's helpful in allowing both renters and landlords to correctly handle partial rent payments.
For example, if you move into your unit during the middle of the month, let's say the 15th, your prorated rate will be significantly less than a full month's rent.
How it works
There are several different ways to calculate prorated rent, and yes, you'll have to do a two-step math problem. However, since not every month has the same number of days, there can be a few factors to determine what percentage of the month you actually have access to your apartment.
The first thing to do is figure out your rental rate for each day of the month. In order to determine this number, you must divide your rental rate of each month by how many days are in that specific month. Again, this depends on which month that you moved in because the days vary from month to month.
Once the rate has been calculated, you must then multiply your daily rent for the month by the exact number of days in the month that you're paying rent for. The number that you receive from the equation is your prorated rent.
Crunching the numbers
Assume your monthly rent is $1,000 and you're moving on September 20. This is how you find your prorated rent:
- $1,000 / 30 (days in September) = $33.33
- $33.33 X 11 (days of the month you are paying for, including the move in date) = $366.67
If math isn't your friend, you can also find helpful online calculators to do all of the work for you. It's as easy as that!
Get it in writing
One of the benefits of prorated rent is that it can be a huge money saver for you over time. Whether you're moving into a unit at the first of the month or towards the end, always be sure to receive the prorating policy of your leasing office in writing ahead of time. In fact, having this policy prior to signing your lease can save you hassle and confusion if you need to calculate prorated rent when you move out.
As noted above, if you aren't sure if you qualify for a prorated rent rate, check with your landlord or leasing office before signing anything official.