What is Prorated Rent and How to Calculate It

12 Nov, 2023
Paresh @Boloforms
7 min read
What is Prorated Rent and How to Calculate It

Create a free BoloForms account today!

Create your free account today and start creating your own digital signature.

Create Free Account


Moving into a new property in the middle of the month can be both exciting and daunting. One of the common concerns that tenants face during this transition is the concept of prorated rent. What exactly is prorated rent, and how do you calculate it? In this guide, we'll provide clear answers to your prorating questions, helping you navigate this aspect of your new lease with confidence.

What is Prorated Rent?

Prorated rent is a fair and equitable way to calculate the partial rent amount that a tenant pays when they haven't occupied the property for an entire month. This situation often arises when a tenant moves into the property in the middle of a month or when they need to vacate before the end of the month due to reasons such as an eviction notice or any other valid circumstances.

Additionally, prorated rent may apply to a tenant's first month on the property if they move in after the first of the month. In such cases, the landlord typically calculates the amount due based on the number of days the tenant has stayed on the property. Prorated rent serves as a mechanism to ensure a fair arrangement for both the landlord and the tenant, preventing any undue financial burden on either party. It's a practical approach to billing rent in scenarios where a full month's rent wouldn't be appropriate or equitable.

Why Should You Prorate?

Prorating rent is a practice that offers significant benefits to both landlords and tenants, contributing to a fair and transparent landlord-tenant relationship. This approach ensures that a tenant only pays for the time they've spent at the property, and it has advantages from both perspectives.

From the landlord's point of view:

  1. Tenant Attraction: Prorating can make it easier to attract tenants, as it demonstrates flexibility with their moving schedule. This can be particularly appealing to potential renters.
  2. Building Trust: Landlords who prorate rent show that they are not solely focused on maximizing income but are willing to establish a fair and trust-based relationship with their tenants. This can lead to a more harmonious landlord-tenant relationship.

From the tenant's perspective:

  1. Cost Savings: Tenants benefit by not having to pay extra for time they haven't spent at the property. Prorated rent ensures they are only charged for the duration of their stay.
  2. Assessing the Landlord: Requesting prorated rent can serve as an indicator of the landlord's intentions. If a landlord is willing to prorate, it may indicate a fair and reasonable approach to the tenant-landlord relationship, which bodes well for the future.

In essence, prorating rent aligns the interests of both parties and promotes fairness, ultimately contributing to a more positive and enjoyable experience for tenants while also benefiting landlords in the long run.

When Do Landlords Need to Prorat Rent?

Prorated rent is not a strict requirement for landlords, but it can be a valuable option to expedite the rental process and accommodate tenants' needs. Landlords choose to implement prorated rent in various situations, including:

  1. Mid-Month Move-Ins: Prorated rent is commonly offered when tenants move in during the middle of the month. It allows them to pay only for the portion of the month they will occupy the property.
  2. Early Lease Termination: In cases where tenants need to break the lease for necessary and legal reasons, landlords may use prorated rent. This ensures that tenants are not financially penalized for their early departure.
  3. Extended Stay: Some tenants may require a few extra days past their lease end date as they prepare to move out. Prorated rent accommodates this situation, making the transition smoother.

Many tenants view prorated rent as a sign of goodwill from the landlord, reflecting flexibility and understanding of their specific circumstances. It can also give your property a competitive advantage in the rental market.

Whether you need to rent the space quickly or have a tenant you genuinely want to accommodate, prorated rent serves as a mutually beneficial solution that meets the needs of both landlords and tenants.

When Do Tenants Need to Prorate Rent?

Tenants have the opportunity to request prorated rent in specific situations as outlined in their lease agreement. For instance, if you vacate the property before the month's end, but a new tenant is scheduled to move in before the start of the following month, you can reasonably request prorated rent for the precise duration you occupied the space during that month.

In such cases, it's important to note that the landlord will still receive the full month's rent, ensuring fairness to both parties. Additionally, if your apartment becomes temporarily uninhabitable due to necessary maintenance issues, you likely have grounds to request prorated rent for the period of inconvenience.

Moreover, it's advisable to research local and state laws designed to protect tenant rights. These regulations may include provisions that grant tenants the right to request prorated rent in emergency circumstances or specific situations, providing additional safeguards for renters.

When Should You Ask For Prorated Rent?

Tenants should consider requesting prorated rent in two primary scenarios. First, when moving into a new property that isn't at the beginning of the month, or second, when moving out before the end of the month.

If prorated rent aligns with your preferences, it's advisable to discuss this with your landlord while drafting the lease agreement. You can work together to include a clause that explicitly covers prorated rent.

In cases where you didn't initially consider prorated rent in your lease agreement, you have the option to make amendments. This involves adding a provision for prorated rent through a lease amendment, ensuring that it reflects your mutual agreement with the landlord.

Methods to Calculate Prorated Rent

Prorating rent can be done manually through two commonly used methods: by considering the number of days in a year or the number of days in a month. However, if you're unsure about your math skills, there are online prorate rent calculators available for quick and accurate calculation.

Using the number of days in a year:

This method is often considered the most accurate way to calculate prorated rent. It involves the following steps:

  1. Multiply the monthly rent amount by 12 to calculate the yearly rent.
  2. Divide the yearly rent by 365 to determine the daily rent.
  3. Multiply the daily rent by the number of days the tenant is paying rent to find the prorated rent amount.

This method is best suited for leases that are at least a year long. For example, if your monthly rent is $3,000, and you're moving in on the 8th of March:

  • Step 1: $3,000 x 12 months = $36,000
  • Step 2: $36,000 / 365 days = $98.63
  • Final step: $98.63 x 8 days = $789.04

Using the number of days in a month:

This method simplifies the calculation by considering the number of days in the specific month. Here are the steps:

  1. Divide the monthly rent amount by the number of days in the month.
  2. Multiply this amount by the number of days the tenant is paying rent to find the prorated rent amount.

This method is more suitable for lease terms shorter than a year. For the same example, if your monthly rent is $3,000, and you're moving in on the 8th of March:

  • Step 1: $3,000 / 31 days of March = $96.77
  • Final step: $96.77 x 8 days = $774.19

Using a prorated rent calculator:

If manual calculations seem daunting, there are online prorated rent calculators available to simplify the process. These calculators can accurately determine the prorated rent amount without the need for manual calculations. Here are a few examples of such calculators:

These tools can be especially helpful when you need a quick and precise prorated rent calculation.

The Top Choice for Real Estate: BoloForms


BoloForms is a comprehensive digital signature platform tailored to the specific demands of the real estate industry. It empowers residential and commercial agents, brokers, escrow companies, property managers, REITs, homebuilders, and developers to seamlessly manage their contract workflows.

At its core, BoloForms equips you with three pivotal functions:

  1. Digital Signature Creation: Whether you prefer drawing, typing, or uploading your signature, BoloForms offers versatile options to create your digital signature.
  2. Efficient Document Editing: Easily complete form fields and digitally sign your documents using the integrated editor.
  3. Streamlined Document Sharing: Send your documents to involved parties, initiating signature requests with utmost ease.

These essential features serve as the cornerstone of BoloForms, enabling you to efficiently sign and process a myriad of real estate forms, contracts, documents, and agreements. Moreover, BoloForms offers additional features specifically designed to meet the unique needs of the real estate industry.

One standout feature is the availability of pre-made templates, which not only save you valuable time but also provide essential legal protection. These contract templates have undergone thorough scrutiny by legal experts to ensure compliance and reliability. Furthermore, these templates can be effortlessly customized and personalized to suit your specific requirements. Once signed, these contracts are legally binding, offering you the peace of mind and legal security you need in real estate transactions.

Legal Forms

BoloForms offers a diverse range of real estate templates that cater to your specific needs, including:

  1. Lease Amendment
  2. Property management agreement
  3. Month-to-month rental agreement
  4. Short-Term Rental Agreement
  5. Sublease agreement
  6. Late Rent Notice
  7. Commercial Lease Agreement Addendum
  8. Commercial Lease Agreement Template
  9. Commercial Lease Application Form

These templates are meticulously designed to simplify and expedite the document creation and signing process.


Life is known for its unpredictability, and things don't always unfold as neatly as planned. When you're in the process of moving into a new place or faced with the unexpected need to terminate a lease, you might find that your lease term doesn't perfectly coincide with the beginning or end of a month. It's in these situations that prorated rent comes into play.

At first glance, prorated rent might appear a bit complicated or intimidating, but it's a concept designed to be fair and reasonable. It provides a method for both you as the tenant and your landlord to reach a financially equitable agreement. Essentially, it ensures that you only pay for the portion of the month that you'll be occupying the property, rather than being charged for the entire month when you won't be there.

When you sit down with your landlord to work out the details of prorated rent, it's about finding a compromise that benefits both parties. This approach helps avoid unnecessary financial burdens and maintains a sense of fairness in your rental arrangement. So, don't be intimidated by the idea of prorated rent; it's a practical and just solution for situations when your lease term doesn't align with the typical monthly schedule.