Property Management Brainstorm

When a new tenant moves in on the 15th of the month, it is only fair to prorate the rent—charging them only for the number days they occupy the unit. But there is a downside to charging a partial month’s rent at move-in. So, what’s the best approach to proration? How can we be fair to our tenants and meet our own financial obligations? On this episode of Five Minute Friday, Bob explains the standard practice of prorating the rent when a tenant moves in mid-month and shares an example of how prorated rent is calculated. He discusses how the first month proration system works and why it may leave you short as a landlord.Bob goes on to introduce us to second month proration, explaining what tenants pay in the first, second and subsequent months under this policy and how it provides assurance that the tenant can afford a full month rent payment. Listen in to understand when a landlord might require both first and last month’s rent at move-in and learn which system we use here at North County Property Group!Topics