What is prorated rent?
If you just rented an RPM property, congratulations! RPM requires that all new tenants pay security deposit and first month's rent in order to get the lockbox combination for move-in. RPM will automatically adjust second month's rent, based on your move-in date, so that you are only charged for the days that you were living at the property.
How is prorated rent calculated?
In order to calculate the prorated rent amount, you take the total rent due and divides it by 30 to determine a “Prorated Cost per Day.” Then you multiply the Prorated Cost per Day by the number of days the tenant will be occupying the property during the first month (including move in day) to generate the prorated amount for the partial month.
Example: Move in August 20th with a rent of $900.
- Calculate “Prorated Cost per Day”
- $900 / 30 = $30 “Prorated Cost per Day”
- Find the number of “billable days” in the move in month by subtracting the number of days in the month plus one.(There are 31 days in Aug.
- If the move in day is August 20th , subtracting 20 from 31 plus 1 is 12 billable days.
- Multiply the “Prorated Cost per Day” by the “Billable Days” to calculate the prorated amount.
- $30 x 12 = $360 due in the 2nd month.
In other words, we want to ensure that rent is an accurate reflection of how many days you have lived at the property. October rent would be the normal rate of $900.