Earlier this year, the San Antonio Express-News reported that San Antonio is once again the fastest-growing city in the nation. For local investors, that means an expanding pool of potential tenants.
What if your new tenant isn't moving in until halfway through the month? Can you still charge a full month's rent if their lease doesn't kick in on the first?
As San Antonio property managers, we know everything you need to know about prorated rent. Read on for our complete prorated rent guide.
How to Calculate Prorated Rent
Prorated rent is adjusted to reflect the number of days a tenant was actually dwelling in your rental unit. How you calculate it will depend on the length of the tenant's standard leasing term.
Month-to-Month Leases
First, you'll need to calculate your daily rate. Divide the amount you charge per month by the number of days in the month you're adjusting for. For example, $1500 of rent divided by 30 days in August is $50 per day (or your daily rate).
Then, multiply that figure by the number of days your tenant will occupy the unit. If they'll only be there ten days in August, you would charge them $500.
Year-Long Leases
If your tenants sign year-long leases and they'll be absent for longer than a calendar month, you can adjust the formula slightly. First, multiply your monthly rate by 12 and divide that figure by 365. With the above example, this would bring your daily rate to about $49.32.
Multiply that daily rate by the number of days your tenant will be absent from the unit. If they won't be there for 35 days, you would subtract $1,726 from the annual rent amount.
Texas Laws and Prorated Rent
Our state government doesn't impose many regulations on a landlord's right to charge rent. In fact, state law does more to limit each city's ability to regulate rent than it does to determine what landlords can and can't do.
You are not required by state or local laws to prorate rent under any circumstances. Our full-service property managers can answer any additional questions you have about San Antonio landlord and tenant rights.
When to Charge Prorated Rent
Though it's not a legal requirement, offering prorated rent isn't always a bad idea. It can give tenants a little more financial freedom and start your relationship off on a positive note.
What if a tenant isn't going to fulfill their lease term due to lease violations? While you can't continue to charge rent from a tenant you've evicted, you don't need to prorate their final month's rent in this situation.
Looking for San Antonio Property Managers?
When you calculate rent in San Antonio, do you need to prorate it to account for things like move-in delays? It's not a legal requirement but it can support strong tenant relations.
At PMI Profit Realty, our property managers know how to walk the line between maximizing profits and keeping tenants happy. We've inherited a service model that has been nationally tested for over 20 years, and we've adapted it to our local rental market. Contact us for informed, high-quality property management.
