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There is a lot of buzz about rent and utility prorations. More often than not, many tenants do not understand what this really is. A brief explanation is it factors rent, utilities and other charges to a daily, weekly, or even a monthly basis.

Prorating Rent

What is the purpose?

Lets say you are renting a property in Honolulu, your lease is up and you are moving out on next month around the middle of the month. Most landlords will take the monthly rent rate, divide it either by the number of days in the month or use a standard 30 days to find out the daily rate. They then multiple this by the number of days you will be in the home in order to calculate how much you actually owe for that month.

Another common use for this is utility payments. For instance, if trash or sewer are being billed separately to you and they are billed quarterly, your landlord may break those payments into monthly installments. This would usually be done in the event you were to move out and they are only charging you until the end of the lease. They could also be trying to make it easier for you by not having you get hit with a larger bill all in one month.

Prorations are used very often by landlords and in most cases, its designed to benefit the tenant so that you don’t have to come out of pocket for days that you may not have been living in the property.

Things to consider

Usually this only applies to situations where you plan on moving out at the end of the lease. If you were to supply your notice to move-out before the end of the lease, you are usually still on the hook for rent and utilities up until the end of the lease agreement



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