Pro-Rata Rent: Starting Tenancy Mid-Month

When a tenancy is set to begin partway through a month—such as on 13 June —and the tenant wishes to pay a pro-rata rent amount covering the period from the tenancy start date to the end of that month, followed by regular monthly payments on the 1st of each subsequent month, it is important to understand how to properly document this arrangement in the tenancy agreement. Additionally, landlords should be aware of the practical implications this change in rent payment date may have on the tenancy and related processes. This article outlines best practices for wording the tenancy agreement and highlights key considerations landlords should keep in mind.

In Tenancy Builder, please follow these steps to have an apportioned amount as mentioned:

  • Keep the rent type as normal (default)
  • Fixed term from - 13 June
  • First FULL payment of rent - 1 July (note how this specifically refers to the first FULL payment, not simply the first payment)
  • Fixed term to - 31 December (assuming six months; otherwise, it will always be the last day of a month in your example).

During your email communications, explain that in addition to the first rent in advance for 1 July, you also require an apportioned amount covering 13 June to 30 June inclusive. You could add this in additional terms of the tenancy, but there's no need because they have to pay that before the keys, and then it's done with, so it's not an ongoing duty under the tenancy. Note: you might optionally only require the initial payment from 13 June to 30 June, and then payments from 1 July might be handled by direct debit - under the Renters Rights Bill proposals, this would be the only amount allowed as it will be prohibited to take more than a month in advance or for a future rental payment.

Calculate the rent by dividing the calendar monthly rent by 30 (the number of days in June) and multiplying by 18 (the number of days owed).

It's essential to ensure that the last day of the fixed term is always the day before rent is due (in your example, the last day of a month) so that when it goes periodic, the periods of the tenancy neatly align with the rent days.

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