Despite the detailed laws governing landlord-tenant relationships in California, there are times when landlords encounter unforeseen circumstances. One of these is when a tenant wants to occupy a rental unit for only a portion of the month.
So, what do you do when a tenant asks to pay prorated rent for the extra days? Read on to find out how property managers do the math in these situations.
Why Would You Calculate Prorated Rent?
Landlords are rarely obligated to prorate rent in California unless they find a new tenant to occupy the extra days left vacant by the tenant. However, it is common practice for landlords to do this as an act of good faith.
Landlords who own a single rental unit can easily avoid the complications of calculating prorated rent. They can simply alter the rent due date to coincide with the day the tenant moved into the property.
If you own multiple units, this can get confusing. So it's best to charge a proportional amount if the tenant wants to move in early.
In cases where the tenant wants to vacate the property early, the landlord can agree to charge them a lower rental for that month. If the tenant short pays their rent for that month, the landlord may deduct the unpaid amount from their security deposit.
Calculating Prorated Rent in Menifee
Rental vacancy rates are currently holding steady, but it's never in a landlord's best interest to turn away tenants who want to occupy a vacant unit before the usual occupation date.
How you calculate prorated rent depends on your rental agreement details. In many cases, the lease agreement may specifically state that you won't allow tenants to pay prorated rent if they break the lease.
If you decide to pro rata rent, you must first determine the value of a single day's rent. This depends on whether your tenants have a month-to-month or annual lease agreement.
Menifee Rent Calculation for Annual Leases
The prorated rent formula for annual leases is very simple. All you need to do is multiply the monthly rental cost by 12 and then divide it by the number of days in the year. Remember that a leap year has one extra day.
This will give you the value of a day's rent. To get the amount owed, you can multiply this amount by the number of days that the tenant will occupy the unit.
Prorated Rent Calculations for Month-to-Month Leases
The calculations for these leases are a little more complicated. This monthly rent breakdown will reveal the cost of one day's rent for your property:
- Number of days in each month of the lease divided by months of occupation
You divide the monthly rent by this average to get the daily rate.
Property Managers Provide the Answers
Hiring a property manager is the best way to ensure you make the right decisions for your rental units.
PMI Smarter Solutions property managers can help you find solutions for every real estate eventuality. Our team is managed by local veterans with over 17 years of property management experience and is backed by a growing national franchise.
We offer a full range of services to help relieve you of the complications involved in property management. Browse our blog for more property management tips, and let us know how we can help you.
