Prorated rent is simply the way to work out how much rent is due when a tenant hasn’t been in the lodgings for the full billing cycle. For example, they move into your property on the 14th of the month but the billing cycle begins on the 1st of the month. You have to work out how much rent they owe for the 17 days remaining in the billing cycle.
You will need to calculate prorated rent to accurately reflect the amount of time your tenant has actually stayed in your property.
While it’s easier to simply use a prorate calculator (scroll down to use the one on our page) you can use some basic math to manually determine prorated rent. We have included these equations below to help give you an idea as to how calculating prorated rent actually works. Knowing how to calculate it manually will allow you to check any online calculator you might use.
The most basic method is to calculate rental costs per day. Once you’ve worked that out you multiply by the remaining days left in the billing cycle.
The Prorated rent for them in this example then would be $640.08.
As the property owner, you’re responsible for non-compliance with snow removal ordinances, so it’s best if you make sure snow removal equipment is available. You may even find if you check the local bylaws that you are required to keep public thoroughfares that cross our property free from snow too...