Renting a space to a tenant can be a mutually beneficial arrangement. There are more than 7.5 million landlords in the nation. Often, rent is designed to follow a specific cycle period.
As with anything in life, there will be exceptions to the rule. Some tenants may have to leave before the end of the month or before their rental contract expires. This is when prorated rent becomes handy.
Continue to read to learn more about prorated rent calculation.
Prorated Rent Defined
Prorated rent refers to when landlords offer a different rent formula for individuals who have to leave within the traditional cycle. If a tenant has to leave before the end of the month, he or she will not want to pay for the full month. This is more than understandable!
Beneficial for landlords, prorated rent agreements help ensure the property is more effectively used. If a landlord and tenant agree to a specific date to leave, the landlord can fill in vacancies quicker.
Prorated Rent Laws in Oregon
Prorated rent is often chosen if a tenant is clear about their intentions in the beginning. In these initial discussions, the tenant explains to the landlord that he or she only needs the property or space for a limited time and cannot fulfill the traditional agreement.
A tenant faces legal obligations if he or she agrees to a traditional contract and desires to leave the property. In the state of Oregon, tenants have to give a 30-day notice for property rented monthly. In Portland, the required notice is 90 days.
If this tenant has rented the space monthly for more than a year, a 30-day notice is required. In Portland, it is again 90 days.
When a notice is given, the landlord can decide to prorate the rent. Tenants who have to break their lease due to unexpected circumstances or financial challenges can receive prorated rent. Some landlords have specific conditions for when prorated rent is applicable detailed in their rental agreements.
If the tenant does not give notice for their planned move out, he or she can face consequences, and the landlord will receive compensation.
Prorated Rent Calculation
Prorated rent is not difficult to calculate. Prorated rent is when a landlord divides the monthly rent cost on a per-day basis.
In other words, tenants who use a prorated rent system pay daily rent rather than per month. This allows tenants to only pay for the time they rent the property rather than the full month.
Prorated rent is calculated by taking the whole monthly rent cost and dividing it by the number of days in the specific month. Once a landlord calculates a daily rental fee, the number will be multiplied by the number of days the tenant plans to stay. This final calculation will determine the rent the tenant owes the landlord.
Property Management Can Make a Difference
Being a landlord can be a complicated task. With effective property management, you can get the most out of your property and run your landlord business more smoothly.
At Kerr Properties, Inc., we strive to provide excellent services for both owners and tenants. This form of business is, in many ways, a trusted partnership.
To learn more about how we would manage your property, please contact us today.