How do I calculate prorated rent in the US?
Divide the monthly rent by the number of days to find the daily rate, then multiply by the days the tenant occupies the unit. The three usual methods are days-in-month (rent divided by that month's actual days), banker's (rent divided by 30), and annual (rent times 12 divided by 365). Days-in-month is the most widely accepted.
Which proration method is fairest?
The days-in-month method is generally considered fairest because it uses the actual number of days in the specific move-in month. The 30-day banker's method is simpler and common in leases. The annual/365 method smooths out month-length differences. Any method is fine if both parties agree to it in writing.
Is a landlord required to prorate rent?
No federal law requires proration, and most states leave it to the lease. However, charging a full month for a partial period is widely viewed as unfair and can be challenged. Best practice — and what most landlords do — is to prorate the first month based on the move-in date.
Should the last month be prorated?
If the tenant moves out mid-month by agreement, yes — prorate the final month for the days occupied using the same method as the first month. If the lease simply ends on the last day of the term, no proration is needed. Confirm the move-out date and method in writing.