When you pay rent for an apartment, you’re pre-paying for the entire future month. During a lease signing, most landlords and management companies ask for the first month’s rent in the form of a cashier’s check. From then on, tenants pay a monthly rent until they move out. However, if tenants do not move in on the first day of the month or their lease does not end on the last day of the month, they may instead pay prorated rent. Landlords and leases may not always disclose the prorated rent. If a tenant does not move in on the first day of the month or move out on the last, they should ask their landlord about the adjusted rent.
Prorated Rent Meaning
Prorated rent refers to the rent a tenant pays if they do not occupy the unit for a full month. When someone signs a lease for an apartment, they may not always sign to move in on the first of the month. Some leases start in the middle of the month, or the unit may need repairs that push the move-in date out a few days. Subletters and those moving in after a lease break may also move in on other days of the month.
During the move-out process, tenants may also face an opportunity to pay prorated rent. They may move out in the middle of the month or a couple of days before the end of the month. However, if the lease ends on the last day of the month and tenants move out earlier, that does not usually qualify for prorated rent. Tenants can receive or ask for prorated rent when the lease dates do not adhere to the first or last day of the month.
How to Calculate Prorated Rent
Anyone can calculate the prorated rent manually if they know the rent price and the total number of days in a month. To calculate the prorated rent, divide the monthly rent price by the total number of days in the month. That is the cost of renting the unit per day. Then, multiply that number by the total number of days of occupancy. Tenants can use the following equation to calculate the prorated rent:
Prorated Rent = (Rent Price / Days in the Month) * Days of Occupancy
Simply plug in the values for the rent price, days in the month, and days of occupancy. Note that the days of the month can change, which can affect the prorated rent. Double-check the days in the month to yield a correct result.
A tenant moving into a $3,000/month unit on March 15th could calculate prorated rent the following way:
Prorated Rent= ($3,000 / 31) * 17
PR = ($96.77) * 17
PR = $1,645.09
The tenant would then pay $1,645.09 for that month of rent.
Prorated Rent Calculator
While calculating does not take too long, renters can also use an online calculator tool to check their work. There are numerous free tools available where users can input their details to find the prorated rent quickly. They can look on a search engine to find a free calculator.
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How to Ask for Prorated Rent
If the lease does not outline the details for prorated rent, tenants should ask their prospective landlord about this adjustment. The lease should outline the terms, including the amount the renter will pay and when they’ll pay it. Most landlords ask for a full month’s rent during the lease signing. If there is prorated rent, they’ll usually collect that in the second month.
When the lease does not describe prorated rent, tenants should ask in writing about adjusting the rental price based on the move-in or move-out dates. In a competitive market, the landlord may not offer prorated rent if the dates are close to the start or end of the month. It is up to the renter to determine if they are comfortable with paying for days when they will not occupy the unit. If someone is moving from out of state and has already had a complicated journey trying to rent an apartment, it may be worth it to pay for a couple of extra days. Otherwise, a tenant at the start of their apartment search may consider looking elsewhere.
Is Prorated Rent the Same as Net Effective Rent?
There are plenty of rent terms that prospective tenants come across when looking for apartments. Renters may see the words “net effective” or “gross rent” on apartment listings, but this is not the same thing as the prorated rent. The net effective rent is the rental price after the landlord applies a free rent concession. For example, a building may offer a month free on a 12-month lease. The tenant pays the gross rent amount each month. However, by calculating the free month of rent, they effectively pay less over the entire lease, also called the net effective rent. This is common in a less competitive market or during the slow season.
The net effective rate is a concession or an offering from the landlord to make the lease more attractive. This differs from prorated rent, as the landlord does not typically offer it as an incentive for renting, but it’s an adjustment based on when the tenant occupies the unit. It’s important for tenants to understand the differences between rental terms to ensure they ask their landlord for the correct adjustment. Additionally, knowing more about the rental process makes it less complicated and intimidating.
Conclusion
Renters who move in or out of their apartment on dates other than the first and last day of the month can ask for prorated rent. Some leases and landlords may provide this information upfront during the signing process. However, if the lease does not outline the terms of prorated rent, renters should ask about it in writing. There are not always opportunities to save money, especially in New York City, so it’s worth asking for any adjustment.
