You are about to move into an apartment, but heard the term ‘pro-rated’ rent or that your rent will be ‘pro-rated’ / based on a ‘pro-rata’ amount. What exactly does pro-rated or pro-rata rent mean?
While most landlords start the rent cycle on the 1st of every month, you might not be moving in on the 1st. Perhaps you will be moving in on the 15th of the month. In that case, your rent could be pro-rated.
Pro-rated rent can be defined generally, as the amount of rent you owe for the specific time-period you move in or out of a property. It is not the total monthly rent, but rather, based on the number of days, you lived in the rental within the month in accordance with the lease terms.
For example, if your 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 the rent for the remaining days in that month (since there are 20 remaining days of June, your pro-rata rent would be $1,000). If you’re not sure how we got to this, don’t worry. We cover the exact formula below. Your rent was ‘pro-rated’ to account for your 10th of June move In.
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.
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.
Though pro-rated rent is often not a legal requirement, landlords do offer it as an attractive solution for many tenants. It certainly isn’t complicated but 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.