Did you know that rent payments in Virginia are going up by as much as 40% in certain cases?
Now has never been a better time to rent out properties and reap the profits. One way you can solve vacancies is by offering some or all of your properties on a short-term basis. This can include stays that last a few months or even a few days.
In these situations, you'd have to calculate prorated rent. Are you wondering how much you should charge? Keep reading to learn all about the do's and don'ts of calculating prorated rent.
Calculating Prorated Rent
Whether you're open to short-term occupancies or you have someone moving a week or two early, the purpose of prorated rent is to ensure that you don't lose out on precious profit.
The first step is to double-check that your rental valuation is accurate and up-to-date. If you haven't raised your rent in several years, for instance, then now has never been a better time to reassess the rental worth of your property.
Once you have the month-to-month number, then calculating the prorated portion will end up being much easier. Since some months have more days than others, it's important to divide your monthly rent fee by the number of days in the relevant month.
After you've calculated that number, then you'll have to multiply it by the number of days the person is staying. The number you get after this calculation is what you should charge on your online tenant portal.
Do you not have an online portal? If so, it's worth ensuring that you offer a wide range of ways for people to pay what they owe you.
Ensuring You Get Paid for Prorated Rent
An online tenant portal makes it easy for your tenants to see how much they owe each month. It can also give them the opportunity to pay their rent manually or with an automatic transfer from a designated bank account.
Offering different rent payment methods makes it convenient both for you and your potential tenants. That way, you'll never have to worry about not getting paid on time or at all.
The good news is that a reliable property management company can offer this tool in addition to a wide range of other valuable services.
Now You Can Start Calculating Prorated Rent
Now that you've learned about the do's and don'ts of calculating prorated rent, you can make sure that you charge the proper amount. The last thing you'd want is to lose out on profit but you also shouldn't gouge the customer.
Renters Warehouse can simplify rent charging, as well as many other management tasks. From marketing and tenant leasing to property leasing and eviction administration, you can always count on us to do the heavy lifting.
If you're interested in working together, please don't hesitate to reach out regarding our free rent analysis. We'd be happy to answer any questions.
