Prorated rent question

[Abel Gudaye]

Im a little confused on prorated rent, I'll be grateful if someone can reconfirm this for me.

Example Commencement date June 13, 2019 and Expiration date June 30, 2020

prorated rent: on or before July 1, 2019 is 1,218.22

The rent is 2150.

So basically, once the tenant signs the lease the he owes the security deposit of 2150 and the rent of June of 2150. Then on the month of July pays 1,218.22 (for moving in the middle of the month) then goes back to paying 2150 every month, right?

[Mitch Messer]

Hi @Abel Gudaye and welcome to BiggerPockets! You're almost there.

First, let's establish that your leasing policy is that upon signing of the lease, the security deposit and 1 full month of rent are due. That means your tenant would bring $4,300 ($2150 * 2) to the table on June 13, 2019. The rent paid on this day will effectively cover the month of July.

Also, let's assume your lease has rent due on the 1st of each month. So, on July 1, the tenant would need to pay rent for the 18 days of June (from June 13 to June 30) that they had possession of the house.

The month of June has 30 days, so at $2,150/mo in rent, the daily rent is $71.67. So, to pay for June, the tenant owes $1,290.06 ($71.67 * 18) in rent, payable on July 1.

Then, on August 1 and every month thereafter, the tenant will owe $2,150 until the lease terminates on June 30, 2020.