How to get on first of the month rent schedule

[Glen Whipkins]

We have listed our first rental and are screening applicants.  My question now is say we sign a lease agreement on the 10th or 15th or 20th of the month, do we pro-rate the first payment then the first full rent payment is due on the first?  Or do we collect the pro-rated amount for feb plus march as the first full month when moving into the unit?  

[James Wise]

Originally posted by @Glen Whipkins:

We have listed our first rental and are screening applicants.  My question now is say we sign a lease agreement on the 10th or 15th or 20th of the month, do we pro-rate the first payment then the first full rent payment is due on the first?  Or do we collect the pro-rated amount for feb plus march as the first full month when moving into the unit?  

 Throughout my many years of dealing with 1,000's of tenants I have found that the best strategy is to make them pay the full 1st months rent no matter what day of the month they move in on. Then you provide them with a pro rated amount for the 2nd month. This way you ensure nobody moves into your property without paying the 1st full months rent along with the applicable security deposit.

Example.

• Rent is $750 per month.
• Rent is due on the 1st.
• Tenant moves into the property on January 15th.
• You charge the tenant $750 for January rent, along with a $750 security deposit.
• February rent is due on February 1st. February rent is $375
• March rent is due on March 1st. March rent is back to $750