Prorated rent is a payment schedule that renters must abide by when moving out. Instead of subtracting the rent amount from the security deposit, the landlord will deduct the remaining balance. In most cases, the landlord removes the prorated rent from the security deposit, so the tenant does not keep the money.
Many renters who sign a lease on an apartment or house aren’t aware that they’re not responsible for the entire first month’s rent but only for a fixed percentage. The rent you pay covers your share of property taxes as well as the cost of the upkeep of common areas. However, it’s not accounted for in the rent you pay. Renters pay a prorated amount each month that goes toward these costs. This prorated amount may be stated on the lease or covered in a condition report completed by the landlord.
How Does Prorated Rent Work?
Moving to a new apartment can be exciting, but it can also be overwhelming. If you initially pay rent monthly, you may wonder how prorated rent works. Proration means “to divide into portions.” So, when it comes to renting, it refers to the amount of time you’re in your apartment before you pay a full month’s rent. So, for example, if you were moving in November, and your lease was for 12 months, then you would only pay your rent for 11 months, but you would still be responsible for paying your rent for July. Proration can be a smart financial strategy since the longer you live in an apartment before moving, the less you will pay each month.
When is Prorated Rent Required?
Apartment tenants are often required to pay rent in advance, but what happens when a tenant moves out partway through a lease? When a lease is signed, a tenant typically pays the full rent amount, while the landlord pays for utilities and other costs. However, what happens if a tenant moves out before the lease is up? What does it mean when she pays rent in advance?
How to Get Your Rent Prorated
When it comes time to renew a lease on an apartment, apartment manager, or rental property, you may find yourself with a surprising bill: prorate the rent. Negotiating a prorate rent bill is tricky, but it can be done. Before you move in, ask your landlord or property manager whether the property prorates rent. If they do not, make sure you can live without the rent savings before you decide to move.
How to Calculate Prorated Rent
Calculating prorated rent is like getting hit with a dual whammy. First, you must find all the costs associated with your moves, such as moving trucks, boxes, and the expenses involved in renting a new place to live. But second, you have to find the prorated rent for your current residence. The prorated rent is simply the rent you are responsible for up to a certain period after leaving your current residence.
Prorated rent is tricky because the amount you owe for rent in your lease is based on the actual number of days you lived there. However, when rent is due, the number of days you live there may be more than the number of days you are there now.
Find Out the Daily Rental Rate
Knowing the daily rental rate is important when renting an apartment because it helps you determine a budget for your move. Renting an apartment can be an expensive undertaking. In addition to the rent, you will need to pay for utilities, food, and any miscellaneous expenses you may incur. Knowing this rate will help you estimate your moving expenses and save cash.
How to Prorate Rent for the Month
Most leases require renters to pay rent every month. However, in some cases, such as when you move into a furnished apartment or when you sublet a furnished apartment, your lease may allow you to pay rent in installments rather than every month. If this is the case, your lease should specify the date payments are due—whether they are due on the first day of the month, the 15th, or somewhere in between.
Prorated rent is rent that is calculated by the number of months that you are renting the apartment. This is based on the lease contract, so it is important to read the fine print. Some leases will show prorated rent on an addendum to the lease that can be included with the initial papers, while others will have a prorated lease attached.