Calculating Pro Rated Rent

RPM Pros makes prorated calculations based on an annual daily rate.

If done correctly you will enter the lease into AppFolio and the system will make the calculations for you. Conversely, when moving out a tenant, if you process the move out correctly through AppFolio the system will process the proration for you.

If you do not process the calculation correctly through AppFolio and a manual transaction is required here are the formulas.

Move in Proration: Monthly Rent $ X 12 months / 365 days X days of proration.

Example: The lease starts 12/26/2024. The days of rent are 31 - 26 + 1 = 6 days. The monthly rent is $2,000.00. The calculation would be $2,000 X 12 / 365 X 6 = $394.52

Move out Proration: Monthly Rent $ X 12 months / 365 days X days of proration.

Example: The lease ends 12/26/2024. The days of rent are 26 days. The monthly rent is $2,000.00. The calculation would be $2,000 X 12 / 365 X 26 = $1,709.59

If you have to give back a prorated amount because you did not calculate an end proration and the tenant was charged full rent the calculation goes differently.

Example: The tenant was charged and paid the full month of December 2024. The lease ends 12/26/2024. You owe the tenant back for 12/27/2024 through 12/31/2024. The monthly rent is $2,000.00. The calculation would be $2,000 X 12 / 365 X 26 = $1,709.59 - $2,000.00 = $209.41 (Proration is based on an annual rate and needs to be processed on what should be and then subtracted from what was. If you process the wrong way you will give back too much … $2000 X 12 /365 X 5 = $328.77)

Please note if a lease agreement makes a statement of $ owed for a time period, that is the amount due regardless of how you came by the calculation.