I have a question in regards to prorated rent.

Hello all
I have a question in regards to prorated rent. I have been having issues with collecting the prorate on time for new move ins. I always apply the prorate on the second month. Full months rent is always paid first no matter the day of move in. We have asked new move ins to pay the full months rent plus the prorate all at the same time. Many are not liking this but I too am not liking new move ins paying late. If it was up to me I would have new move ins move on either the end or first of the month so it all runs smoothly payment wise.

What ideas have you tried to get the new tenants to pay on time that prorate rent ?
Or do you guys do a move in special to deter the prorate ?

Please advise.
Thanks yall

Don’t give them keys unless they pay what’s due at move in.

I dont. I always charge full months rent first then the following month the prorate but getting them to pay that on time has been hard. I wish there was a way to deter the prorate

We have a standard requirement that after the 15th, they pay the prorate and the next month. If it’s not paid, no keys.

You make the payment policy very clear up front, make sure they know in advance the amount they are required to pay on our before their move in day, and you don't give possession until they've paid it.

yes I do but it's the prorate the following month I have a hard time collecting on time.

Prorate + next full month if they move after the 25th has always been our policy, and we won’t do keys without it. (Certified funds for move-in money!)

I personally don’t require the next months rent unless they move in a few days prior to the next month. If you require a fulls months rent upfront I can imagine the headache of collecting the prorate because that’s confusing to residents that don’t work in the industry... I would make them pay the prorate only unless they move in like the 28th or something. I’m not sure about you but at my property we have several move ins per week and that’s too much for you to keep up with on top of the current delinquency.

we accommodate them with a move in anytime after the 1st of any month if they need it. Which many times people move in all month long. It's just getting the prorate the following month that has been hard. Well to collect it on time

I agree
We don’t require a full months rent unless it’s on the first. We do require full deposit before or by move in.

I can imagine! We allow move ins anytime so it would be a nightmare to keep up with. Is that a company wide policy or just your property if you don’t mind me asking..

We required prorated rent plus next full month if they moved in the 15th or after. If they can’t pay full amount they do not get their keys. If they used a personal check it also had to clear the bank by time they moved in, if not cashier check to avoid NSF.

We require pro-rate plus next month if it’s 20th or after.
Anything before is pro-rate only.
We also strongly encourage a
ACH rent payments for all (of 198 units, I only have about 15 not on it).
Don’t give keys unless they pay, simple.

We accept just the prorated amount at move in. Full month due on the first of the next month.

Pro rate and sec deposit on day of move in.. if they don't have it they don't move in.

Prorated tent and security paid at lease signing, next month is next month and I've never had issues with them being paid on time.

Does your concession addendum state if they pay late the concession will be charged back. If so express this to new move ins let them know they will loose the concession

Anyone who moves in after the 20th pays the prorate and the next full months rent in certified funds at move in.

Confused. Why are they paying pro-rate if they paid a full months rent when they move in no matter the day?

like today someone is to move in so I charge the full months rent.
On the first of November I charge the prorate.
But I am having difficulty getting the prorate paid on time. That's my pickle

I used to charge the prorate and the next months rent for any move in after the 15th.

I would efinafely ask for it all up front. Prorate from 16-31 or whatever and then November’s rent. Depending on whatever day you want to make it. Certified funds of course.
Bc I’m still confused ???? they probably see it as “prorate” and not actual rent hence why they don’t care to pay on time.

I always collect prorated and deposit to move in. Next months too if it is after the 25th of the month.

I think this can be confusing to the new resident, they are thinking they paid their 1st full month so nothing is due. Do you have them sign a separate form stating what is due and by when?

Only pro rate due unless they move in on or after the 25th - then they have to pay pro rate and next months rent

Whatever day they move in they pay a pro-rate for the remainder of that month. They pay a full month’s rent on the first of the following month.

So, you're requiring more than what is actually due for the partial month? I can see where it would be confusing to the resident. It doesn't make sense. It's backwards. You're charging a pro-rate for a full month and charging a full month for only part of the month.....

Our company requires an entire month upfront and then the prorate the second month of residency. I usually explain that we do it a little differently or we do it kind of backwards because it is exactly that.
That being said, we also send a welcome email detailing all of the costs and fees. There is also a welcome folder given at move in with a copy of the letter, the lease, etc.
Because the rent payments for the first two months do feel 'backwards' to a lot of folks, we overemphasize what is due and when.

If they move in between the 1-15 they pay the prorated rent only then month 2 when month 2 comes due. If they move in after the 15th, the prorated balance would be paid in addition to FMR prior to move in. If they are paying deposits within 1 week prior to move in, only a bank check or money orders are accepted. Too many times have I had checks bounce after I’ve given keys then I’m chasing them for weeks.

I always collect the full months rent upon move-in and if it’s after the 25th of the month I asked for the prorated the same time otherwise it’s due on the first of the next month I don’t seem to have any problem collecting it

We charge prorate at time of move in. If they move on the 25thbor later next months rent is due as well. All certified funds. I make this very clear at time they are approved and we are discussing move in dates. I don't get push back at all because I'm very upfront with all cost. I think confidence and clear communication is key.

If you have a problem correcting the prorated rent you have a problem with the system and should address this with the owners.
Our cutoff date is the 22nd. If you move in on or after the 22nd you pay the prorated amount and next months rent.
We also only collect cashiers checks for the first move in payment. This way it’s certified funds.
I would maybe suggest maybe asking in advance for a post dated cashiers check. As well as make it clear, if you do not pay the prorated amount, there is a $100 late fee and $10 every day after it’s late.
Everything should be paid at move in or you don’t get keys.

I've never heard of it being done this way. I can see why you're having a hard time. Perhaps if your owners require that, you should go to requiring first and last month's rent. We charge from the MI date to the end of the month. On the 1st they would pay a full month's rent. If they MI after the 25th they pay the prorate plus next month's rent. We don't give keys until everything due is paid.

Why y'all making things so complicated?! Lol just charge prorated alone till the 20th or 25th, then prorated plus next month after 20th or 25th. Simple... Why on God's green earth ???? would you charge prorated on a full month? What kinda people y'all got moving up in there!? Don't make life harder than it needs to be homie

Same here I charge prorate and the first months rent together (depending on the day of the month they move in) they don’t get keys until they pay

Definitely don’t require moves ins at one time of the month that would be terrible for your occupancy. Do you have a welcome letter that is given to applicants? I would tell them first and prorate is due at move in when they apply, have them sign it. If they don’t agree they can’t move in. Pretty simple.

My guess is that those commenting negatively here on paying prorated rent in the second month are managing large complexes. For a small landlord,it can serve as a discouragement to those who may be called "professional tenants" (a person whose goal is to move in with the least amount of money required, then not pay rent and live free while you work and pay to evict them). This is the primary reason prorated rent on my property is paid in the second month, it is another (passive) layer of screening. My rental being in a small town with minimal professional jobs, requiring a full month's rent up front weeds out those who dont manage their money well. Including the prorated rent amount and due date in the welcome letter is a solid idea gained from posts here that I will be implementing. I do already cover in the initial telephone conversation that first month's rent plus deposit is due in full up front.