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Prorated Rent When Creating a Lease
Prorated Rent When Creating a Lease

Some leases don't start at the first of the month.

Samuel avatar
Written by Samuel
Updated over a week ago

Overview

Prorated rent is a term used to describe rent that is charged on a pro-rated basis, which means that it is calculated based on the number of days that a tenant occupies a rental property. This can be necessary when a tenant moves in or out of a rental property during a month that is not the first or last month of their lease. In this tutorial, we'll teach you how to account for prorated rent on a lease when a tenant does not begin on the first of the month.

The Steps

You can create a prorated rent charge while creating a new lease in DoorLoop and the process is fairly automatic. We’ll walk you through the process here. If you need a refresher on how to create a new lease, read the article on how to Add a New Lease. The most important part of this tutorial occurs in Step 1 and Step 3 of the process when you are entering a lease start date and the rent start date.

The Steps

  1. On the main menu, click Leasing and then click Leases. Alternatively, you can also create new leases from the Leases tabs of your properties and units.

  2. Click on the + New Lease button at the upper right of the display.

  3. On the Overview step, select the Property, the Unit, and then the Lease Terms.

  4. If this lease has Prorated Rent for the first month, enter the Start Date of when the Tenant is moving in. For instance, if the Tenant moves in on October 26, 2023 enter 10/26/2023.

  5. Click Next to continue.

  6. Go through the leasing process until you get to the Rent section.

  7. On the section that reads "When do you want to start charging rent?", change the First Rent Date to the first date that a full rent period starts. For example. If the first Lease Date is October 25, 2023, then the First Rent Date will be November 1, 2023 (if you charge rent on the 1st of the month).

  8. You’ll see a new notification popup that reads, “Your first date is different than your lease start date. Should we prorate the charges?” Click the blue Prorate Charge button to apply the prorate charges and the system will calculate the amount automatically.

  9. Click Next to continue.

  10. Go through the rest of the lease creation process as normal to create the lease.

You'll know if everything worked correctly when you go to the lease and you see a charge for the Prorated amount and a Recurring Rent schedule that starts on the 1st of the upcoming month.

That’s how you would add Prorated Rent for the first month when creating a new lease. Again, the most important steps here is to set the Lease Date on the day they actually start the lease and the First Rent Date to a date in the future that is the first day that a full rent period starts. DoorLoop will automatically calculate the prorated amount.

Next Steps

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