What is Prorated Rent?

We all want our plans to come to fruition and, more often, favor excellence. It simply feels less difficult and more certain. Nevertheless, perfection is elusive at best. Even when it comes to real estate investing, not every aspect of it will go as expected. Regardless of your best of intentions, things might still go wrong with a specific deal. Suppose you are a tenant who has searched for short term rentals in Dubai and is willing to switch your apartment. The ideal time to do so would be the end of the month, and begin renting a new place on the first of the next month. The landlord may also prefer to start leases on the first of the month for accounting purposes. 

However, sometimes people come across uncertain situations and have to move out or move in on other days and not exactly the first and last of the month. In such situations, landlords can charge monthly rent on the date the renter moves in to address the gap between move-in and due dates. But it can get a little chaotic, and it is simple to forget when the rent is due. Here, the favorable option for both landlords and tenants is to opt for prorated rent. Read on to find out more about what exactly prorated rent refers to and how you can benefit from it. 

Prorated Rent Explained 

Considering you are not moving into a new apartment on the first of the month, the prorated rent is the sum you need to pay the landlord for the number of days you live in it. The proportion of the monthly rent that a tenant would pay depends on how much of the month they are using the apartment. As per this condition, if you rent an apartment for the entire month but don’t move in until the 15th of that month, then your prorated rent would probably be half of your normal rental amount. 

Note that there is no single standard rule followed for prorated rent. Some landlords may offer to prorate your rent before you even ask for it. If you are unclear, check your rental agreement, which may outline all the circumstances in which your rent may be prorated and those in which it doesn’t apply. As a tenant, you must request prorated from the property owner if your agreement doesn’t specify it.  

The calculation of prorated rent is simple. 

Prorated rent = (monthly rent / number of days in a month) x number of days the tenant has occupied the apartment

Let us calculate the prorated rent for the case mentioned below:

Tenant A has agreed to move into a new apartment with a monthly rent of $1500. The move-in date is 12th April. This means the number of days the tenant has occupied the apartment is 19 days.  

So, the prorated rent will be = ($1500/30) x 19

= $950

In other words, the tenant is able to save an amount of $550 due to the delay in the move-in date. Apart from this, there are other ways of calculating the prorated rate as well. 

Benefits of Prorated Rent

Reading the above information, you can infer that prorated rent is beneficial for the tenants, though not for the property manager entirely. As an owner, if you are trying to swiftly fill your vacancies with the proper tenants, then offering to prorate the rent can lure more tenants. Though the lease may not coincide with the first day of the month, renters will welcome your flexibility and might be more eager to move in soon due to the cheaper rent expenses. 

Overall, prorating rent is a great method for a landlord to demonstrate to prospective tenants that they are prepared to work with them and establish a relationship based on fairness and trust. On the other hand, if a landlord charges the full month’s rent even if the tenant isn’t able to live in the property for the entire month, then there is a good possibility that they won’t be accommodating on other matters as well. Additionally, the tenant will know that the landlord would be interested in getting the most money possible from them. Knowing this trait of the landlord in advance would help the tenant make the right decision regarding renting the property. As a tenant, you will always be at an advantage if prorated rent is offered by the landlord.


Written by Rida Sheppard