Home › Guides › How to prorate rent
How to prorate rent when a tenant moves in or out mid-month
Tenants rarely move on the first of the month. When someone takes the keys on the 12th or leaves on the 8th, you need a clear, written way to charge a partial month. If the method is vague, the first ledger entry is already in dispute. This guide covers the two methods landlords use most, worked examples for a move-in and a move-out, and how to record a prorated charge so the rest of the rent ledger stays clean.
General information, not legal advice. Whether you may prorate, which method you must use, and who pays for the move-in or move-out day are questions for the lease and for the law where the property is. Put the method in the lease before you need it.
Put the method in the lease first
Prorating is a lease calculation, not a habit you invent at move-in. The clause should state:
- Which method you use (actual days in the month, a 30-day month, or another stated daily rate).
- Whether the move-in day is included, and how a mid-month move-out is handled.
- When the first full month's rent is due.
If the lease is silent, do not assume you can collect a full month for a 10-day stay, or that the tenant is entitled to a prorated last month. Some leases require a full final month if the tenant breaks the term early; some local rules say otherwise. When you do prorate, use the same method at both ends of the tenancy.
Two common methods
Monthly rent in every example below is $1,650.00.
Actual-days method. Divide the monthly rent by the number of days in that month, then multiply by the days the tenant has the unit, counting inclusively unless the lease says not to.
30-day (or "banker's month") method. Divide the monthly rent by 30, then multiply by the days occupied, even in February or in a 31-day month. The daily rate never changes.
| Month | Daily rate, actual days | Daily rate, 30-day method |
|---|---|---|
| June (30 days) | $55.00 | $55.00 |
| February (28 days, non-leap) | $58.93 | $55.00 |
| March (31 days) | $53.23 | $55.00 |
In 30-day months the two methods match. In February the actual-days rate is higher; in March it is lower. Neither method is more "correct" in the abstract. Consistency, and a clause the tenant has already agreed to, is what matters.
Worked example: move-in on 12 June
The tenant receives the keys on 12 June. June has 30 days, and the lease counts the move-in day, so the occupied days are 12 through 30, which is 19 days.
| Method | Calculation | Prorated rent due |
|---|---|---|
| Actual days | $1,650.00 ÷ 30 × 19 | $1,045.00 |
| 30-day month | $1,650.00 ÷ 30 × 19 | $1,045.00 |
In June the two methods give the same $1,045.00. Charge that amount as the June rent, dated 12 June (or the lease start date), and charge the first full month of $1,650.00 on 1 July in the usual way.
If the same tenant had instead moved in on 15 March (31 days, 15 through 31 is 17 days):
| Method | Calculation | Prorated rent due |
|---|---|---|
| Actual days | $1,650.00 ÷ 31 × 17 | $904.84 |
| 30-day month | $1,650.00 ÷ 30 × 17 | $935.00 |
The 30-day method is $30.16 higher in March (the actual-days amount minus the 30-day amount is −$30.16). That gap is why the lease has to pick one method in advance.
Rent Ledger & Late Rent Tracker
Know who paid, who owes, and for how long. Add your tenants once and log payments as they come in. Rent is charged on each due day, late fees follow your rule, and every balance updates by itself.
Excel & Google Sheets · sample + blank file · PDF guide
Get the free cash flow calculator
Price, loan, rent and expenses in; monthly cash flow, cash-on-cash return, cap rate and DSCR out. Works in Excel and Google Sheets. The price is $0; enter your email on the next page to get the download.
The file is sent to your email. You may get an occasional message about our templates and can unsubscribe at any time.
Worked example: move-out on 8 February
The lease uses the same $1,650.00 rent and allows a prorated final month when you have agreed a move-out date. The tenant leaves on 8 February in a non-leap year. Counting 1 through 8 is 8 days.
| Method | Calculation | Prorated rent due |
|---|---|---|
| Actual days | $1,650.00 ÷ 28 × 8 | $471.43 |
| 30-day month | $1,650.00 ÷ 30 × 8 | $440.00 |
The actual-days figure is $31.43 higher, because February's daily rate is $58.93 instead of $55.00. If you had collected a full $1,650.00 at the start of February, you would credit or refund the unused portion under the method in the lease: $1,178.57 if you use actual days, or $1,210.00 if you use a 30-day month, before any other charges or deposit deductions.
If the lease instead says the last month is not prorated when the tenant breaks the term, the charge stays $1,650.00 and there is no unused-rent credit. Follow the lease.
How to record it in the ledger
Treat a prorated period as an ordinary rent charge for that amount, with a short note in the description ("June rent, 12–30, 19 days at $55.00"). Do not overwrite a $1,650.00 charge to $1,045.00 later without leaving a trail; if you already billed a full month, add a credit line for the unused days.
- The running balance should show what the tenant actually owes after the prorated charge and any payment.
- Late fees, if they apply at all to a short first month, have to follow the lease and local law. A late fee calculated as a percentage of a full month's rent can be the wrong base for a 19-day charge; see how to calculate and track late rent fees.
- Partial payments against a prorated charge are recorded for the amount received, the same way you would record them against a full month.
A monthly rent-payment check then matches the bank: June shows $1,045.00 due, not $1,650.00.
Small habits that keep this uneventful
- Write the day count on the move-in statement, not just the total. "19 days × $55.00 = $1,045.00" ends most questions.
- Use the same method for every unit in the same building, unless a lease already on file says otherwise.
- Decide who pays the overlap day when one tenant leaves and the next arrives on the same date. Charging both for that day, or neither, is how double-rent and vacancy-day disputes start. The two leases should not contradict each other.
- Do not mix a prorated rent figure with a security deposit in one line. They are different amounts and have different rules.
The Rent Ledger & Late Rent Tracker keeps a per-tenant ledger with a running balance, so a 19-day first charge and a full month after that stay easy to follow.
Rent Ledger & Late Rent Tracker
Know who paid, who owes, and for how long. Add your tenants once and log payments as they come in. Rent is charged on each due day, late fees follow your rule, and every balance updates by itself.
Excel & Google Sheets · sample + blank file · PDF guide
The examples are made up. This guide is not legal advice. Use the method in the lease and the law where the property is.
Get the free cash flow calculator
Price, loan, rent and expenses in; monthly cash flow, cash-on-cash return, cap rate and DSCR out. Works in Excel and Google Sheets. The price is $0; enter your email on the next page to get the download.
The file is sent to your email. You may get an occasional message about our templates and can unsubscribe at any time.
Frequently asked questions
How do you prorate rent for a mid-month move-in?
The two common methods are actual days (monthly rent divided by the number of days in that month, times the days the tenant has the unit) and a 30-day month (monthly rent divided by 30, times the days occupied). The lease should say which method you use and whether the move-in day is included.
Do you prorate rent when a tenant moves out mid-month?
Only if the lease or local law says so. Many leases require a full last month if the tenant leaves early, or they prorate only when you have agreed a move-out date. If you do prorate, use the same method you used at move-in and write the daily rate and the day count on the ledger.
Should the move-in day be charged as a full day of rent?
Usually yes, if the tenant receives the keys that day, but the lease should say so. Count inclusively unless the lease says otherwise: a June 12 move-in in a 30-day June is 19 days (12 through 30), not 18.