When lease begins after the 1st...

[Jon S.]

... do you prefer to prorate the 1st mo rent or change the due date? I’ve always pro-rated the 1st month but I have property mgmt software that can easily keep track of multiple due dates. I have a tenant moving in on the 5th and am thinking about just making the 5th of the month the due date for rent instead of the 1st. Thoughts?

[William C.]

It’s really personal preference. I like to make the due date the first, so I receive all my checks on or before the first. That’s when my mortgages are due, so therefore, want the cash to pay for the mortgage. Iv heard a BP podcast of a guy saying he’d like to own 30 properties, and make each due date a different date, as to have money coming in everyday of the month. I don’t see any reason that one way it better than the other, so do what’s best for you and YOUR business.