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.
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.
Yes you shouldn’t double charge rent. Or get caught. Never ever because it’s bad…