When moving into a new apartment mid-month, or leaving a rental early, you may hear the term “prorated rent.”
At first, it might sound confusing, but prorated rent is a simple and fair way to ensure that tenants pay only for the days they occupy a property, and landlords receive rent for the exact period the unit is rented.
In this guide, we’ll explain what prorated rent is, how it works, and how to calculate it step by step.
What Is Prorated Rent?
Prorated rent is a partial rent payment that covers only the period a tenant occupies the property during a given month.
For example, if your monthly rent is $1,200 and you move in on the 15th, you shouldn’t pay for the full month. Instead, you’ll only pay for the remaining days — about half — which would be prorated rent.
This ensures fairness for both parties:
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Tenants don’t overpay for unused days.
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Landlords still receive rent for the exact time the unit is occupied.
How Does Prorated Rent Work?
Prorated rent acts as an adjusted payment based on your move-in or move-out date.
Let’s say a tenant moves into a rental unit partway through the month. Instead of charging the full monthly rent, the landlord charges only for the days the tenant will live there.
However, keep in mind:
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Some states require using a flat 30-day month for calculations.
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Others require using the exact number of days in that specific month (28–31 days).
Because of this, both landlords and tenants should check local rental laws to confirm which method applies.
How to Calculate Prorated Rent
Calculating prorated rent is simple once you know the formula.
You can calculate it using either the exact number of days in the month or a flat 30-day rate.
Method 1: Using the Exact Number of Days in the Month
Formula:
Example:
If rent is $1,200 and you move in on the 15th of a 30-day month:
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Daily rent = $1,200 ÷ 30 = $40/day
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Days occupied = 16
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Prorated Rent = $40 × 16 = $640
Method 2: Using a Flat 30-Day Month
Some landlords prefer to standardize months to 30 days for simplicity.
Formula:
Example:
If rent is $1,500 and the tenant moves in on the 10th of the month:
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Daily rent = $1,500 ÷ 30 = $50/day
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Days occupied = 21
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Prorated Rent = $50 × 21 = $1,050
Why Prorated Rent Is Important
For tenants, prorated rent ensures fairness—you only pay for the days you live in the property.
For landlords, it helps keep rent collection consistent and fair, especially during mid-month turnovers. It’s also a sign of professionalism and transparency, which can improve tenant satisfaction.
Can You Automate Prorated Rent?
Yes! Many property management platforms now allow you to automatically calculate and charge prorated rent.
For example, software like RentRedi helps landlords:
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Create prorated rent invoices instantly
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Accept partial payments
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Automate full or partial rent collections
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Manage listings, leases, and maintenance in one place
This makes the process smoother for both sides — no more manual math or confusion.
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Final Thoughts
Prorated rent is a simple yet essential concept that ensures fairness for both tenants and landlords. By paying only for the days a unit is occupied, tenants can save money, and landlords can maintain transparent and professional rent collection. Whether you’re moving in mid-month or managing a rental property, understanding how prorated rent works—and using the right formulas—makes the process smooth, fair, and stress-free.
