Pro-rated rent can save you money ($) on the first month you move in.
If you are not moving in on the 1st of the month (when most normal rent cycles start), your rent could be pro-rated or allocated proportionately to the number of days you will actually be in the apartment. In other words, if you move in after the first of the month, your pro-rated rent will be less for that first month.
Thus, pro-rated rent almost always helps the renter and is a good thing for you.
What’s an Example?
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If your normal monthly rent is $1,500 and, in accordance with your lease, you move in on the 10th of June, you likely would only be responsible for the pro-rated rent or rent for the remaining days of that month.
Since there are 20 remaining days in June, your pro-rated rent would be $1,000. So instead of paying $1,500 for the 1st month, you only have to pay $1,000.
If you’re not sure how we got to this, don’t worry. We cover the exact formula below.
How to Determine Pro-Rated Rent?
If you and your landlord have made an agreement to pro-rate rent for a month, you’ll need to determine how to calculate it. Here are some ways to do it:
- Get the daily rental rate – the daily rate is usually determined based on the total monthly rent divided by the number of days in the month
- Multiply the daily rental rate into the number of days you live in the rental.
For example, if you move in on June 10th in accordance with the terms of your lease, and your monthly scheduled rent is $1,500, then your daily rental rate (is $1500/30 = $50), multiplied by the number of days you live in the rental or $1,000 dollars.
There are a few different ways to calculate pro-rated rent so make you understand which calculation will be applied. For example, it could be pro-rata based on number of days in a year.
Feel free to watch this quick summary video:
How to Get Pro-Rated Rent
While most landlords offer pro-rated rent, it’s important that you check this ahead of signing the lease and moving in so you’re not unaware later. Ideally, there should be a clause in your lease agreement stating whether or how pro-rated rent works.
If none of this is clear, just ask. Sometimes, the landlord may not have considered this factor but may be willing to negotiate. But it’s always a good idea to have any verbal agreement in writing since this eliminates the chance of any miscommunication later.
Final Thoughts
Though pro-rated rent is often not a legal requirement, landlords do offer it as an attractive solution for many tenants. It requires agreement from both parties.
Keep in mind that you likely won’t be entitled to pro-rated rent if you move in late just because your plans changed. For example, if your lease begins on the 1st and the apartment is completed for occupancy on the 1st, but you decided to move in on the 6th because your plans changed, this likely won’t result in pro-rated rent by the landlord.
