What is prorated rent?
Prorated rent is a partial rent charge based on the number of days a tenant occupies a unit, rather than charging for a full month. It’s commonly used when a tenant moves in or moves out in the middle of a billing cycle, ensuring rent is fair and proportional to actual occupancy.
How Prorated Rent Works
Instead of paying a full month’s rent, tenants only pay for the days they actually live in the unit. This is usually applied during the first or last month of a lease when move-in or move-out dates don’t fall on the first or last day of the month.
How to Calculate Prorated Rent
There are two common methods used to calculate prorated rent:
Method 1: Based on days in the month
Divide the monthly rent by the number of days in the month
Multiply the daily rent by the number of days the tenant will occupy the unit
Formula:
Monthly Rent ÷ Days in Month = Daily Rent
Daily Rent × Days Occupied = Prorated Rent
Method 2: Based on a 30-day month
Divide the monthly rent by 30
Multiply by the number of days the tenant will occupy the unit
Formula:
Monthly Rent ÷ 30 = Daily Rent
Daily Rent × Days Occupied = Prorated Rent
Example:
If rent is $1,500/month and a tenant moves in on the 15th of a 30-day month:
$1,500 ÷ 30 = $50 per day
$50 (daily rent) × 15 days (Days Occupied) = $750 prorated rent
Creating a prorated charge in RentRedi
Setting up Lease Charges
RentRedi automatically calculates prorated rent based on the lease start and end dates you enter when creating lease charges.
From your RentRedi dashboard, Properties tab.
Select the property and unit where you want to set up lease charges.
Under Lease Details, click Set Up Lease
Add Charge Details
Enter the monthly rent amount, lease start date, and lease end date.
Choose how often to charge rent: Monthly (default), 1/2 month (bi-weekly), or Custom
Select the due date for the charge
Optional: enable rent reminders and set reminder preferences (can be customized later).
Optional: check require tenants to pay oldest charges first.
Click Next.
Select Unit & Tenant
Select the tenant(s) who should be able to view and pay the charges.
Optional: Turn on credit-boosting to help improve your tenants' credit scores.
Click Next.
Review Charges.
In the preview, you'll notice prorated charges are automatically added based on your lease details.
You can edit the charge details, delete, or duplicate charges, as needed.
Click Create Charges when you're finished.
Individual Charge
You can also create an individual or single charge for your prorated rent!
From your RentRedi dashboard, click the + (plus sign) on the left-hand menu.
Click +Create New, select Other Charge.
Add Charge Details.
Enter your prorated amount.
Select a charge type (example: Rent)
Set the number of occurrences (how many times do you need to charge this amount for your tenant).
Enter a description (example: Prorated Rent)
Set the charge due date.
Click Next.
Select Unit & Tenant.
Select the tenant(s) who should be able to view and pay the charge.
Optional: Turn on credit-boosting to help improve your tenants' credit scores.
Review Charges.
Review the prorated charge before saving.
You can edit the charge details, delete, or duplicate charges, as needed.
Click Create Charges when you're finished.