How to Properly Calculate Pro-rated Rent And When To Charge It

November 3rd, 2012 · 9 Comments · Property Management

One of the calculations you may need in your life as a landlord is how to calculate pro-rated rent. When you have a vacant apartment and a tenant wants to move into it early, you should let them and charge them for the number of days they need. You may also need this calculation if the tenant moves out early and you need to figure out how much they owe according to a Landlord & Tenant Board Order.

Calculate Daily Rent

In this example the rent will be $1000.

$1000 (Monthly Rent)  X 12 (Amount of months per year) = $12,000 (Annual Rent)

$ 12,000 (Annual Rent) / 365 (Days in a year) = $32.88 (Daily Rent)

Calculate Your Prorated Rent

Once you know your daily rent amount it’s relatively simple to figure out how much to charge the tenant. Let’s say the tenant want to move in a week early, that’s 7 days.

7 (Amount of Days) X $ 32.88 (Daily Rent Amount) = $230.16 (Pro-rated Rent Amount)

Charging Prorated Rent

The law in Ontario does not allow us to charge more than first & last month’s rent plus pro-rated rent. If your tenant wants to move in on last week of the month to ease the moving transition for example you are allowed to charge him that extra bit more.

$1000 (First month’s rent) + $1000 (Last month’s rent) + $230.16 (Pro-rated rent amount) = $2230.16 (Total amount owing)

When To Charge Pro- Rated Rent

For the most part, whenever you can. If the apartment is vacant I do allow people to move in the weekend before if it’s just 2 days. If it’s more I start charging. As landlords we are in the business of renting space not giving it away.

Happy Calculating…also feel free to follow me on twitter. @landordrescue


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9 Comments so far ↓

  • Joe Q.

    Important also to note that you can’t double-charge rent (correct?) If your old tenant moves out on the 15th of the month, and your new tenant moves in on the 22nd of the month, you can only demand rent from the old tenant up until the 21st.
    You cannot collect rent from both the old and the new tenant for the 22nd onward.

    Correct me if I’m wrong.

  • Peter

    Is it possible for me to prorate rent for a year? Lets say I want to charge $1695 a year but for the next 12 months I will charge that tenant $1500 a month ‘prorated’ so that I can then charge them $1695 once that 12 months is up.

  • Mike

    Hello, I have a month to month tenant who after paying their rent decided to move out 8 days after, without notice. The tenant has asked for us to prorate the rent as we did when he moved in a week prior to the 1st. We have a new tenant moving in but not until the 1st of the next month. What is my obligation to the leaving tenent? Thank you, mike

  • Federico Zauritz

    Hi there,

    I sold my house in Scarborough to my tenant.
    The issue is, that he is not paying the utility bills for the last month of tenancy. I have been in touch with him through emails, due to I moved to London, ON, since November 8th, 2016.But his answers are evasive, I have provided him with proof of payment, my bank account number.
    I do not what to do in order to get the money reimbursed.
    Your help will be much appreciated.
    Federico Zauritz

  • Joe

    Sorry for posting on an old post, but I was wondering something. If we are moving out on the 10th of the month and the landlord asks for the keys and says they will do the cleaning, and it is around the 15th of the month, am I within my rights to ask for a partial month’s rent back?

    • Rachelle

      It depends on the circumstances, if you paid, you don’t have to give him the keys. If you are moving because of a notice, some have 10 day provisions and you can ask for money back.