What prorated rent is
Prorated rent is the partial rent owed when a tenant moves in (or out) partway through a month. You charge only for the days they actually occupy the unit, not the full month.
Every method is the same two steps: find a daily rate, then multiply by the days occupied. The methods differ only in how they compute the daily rate.
The three methods
- Actual days in month — rent ÷ the real number of days that month (28–31). Most calendar-accurate.
- 30-day (banker's) month — rent ÷ 30, regardless of the month. Simple and common in leases.
- Annual — rent × 12 ÷ 365. A true average daily rate, identical every month.
Example: $1,500 rent, moving in September 16 (15 days left in a 30-day month). Actual-days rate is $50/day, so prorated rent = 15 × $50 = $750.
Check your state
Some states mandate a method. California requires the 30-day month; Texas requires actual days. When in doubt, use actual days and put the method in the lease. Once the tenant is in, make sure the full rent matches the market — start with a free rent estimate for the address.