The proration of rent clause stipulates that the tenant's rent amount will be adjusted proportionally based on the number of days they occupy the property in a given period. This ensures that both the tenant and landlord are fairly compensated if the lease term begins or ends mid-month.
5.5 Proration of Rent for Partial Months. If the Term begins on other than the first day of a month, Base Rent and additional Rent from such date until the first day of the next succeeding calendar month shall be prorated on the basis of the actual number of days in such calendar month and shall be payable in advance. If the Term terminates on other than the last day of the calendar month, Rent from the first day of such calendar month until such termination date shall be prorated on the basis of the actual number of days in such month, and shall be payable in advance.
The proration of rent and any other amounts payable by tenants shall be made on the basis of actual rent collected and there shall be no proration for uncollected rent or other amounts. At Closing, Purchaser shall receive a credit for any leasing commissions and tenant improvements costs and allowances which Purchaser will be required to pay after Closing with respect to any existing Leases.
Proration of Rent. If either Landlord or Tenant exercises its right to terminate this Lease pursuant to this Article 17, all Basic Rent and Additional Rent will be prorated as of the date of such casualty.
At closing, the purchase price paid to the seller will be adjusted to account for the proration of rent paid by the Series NKES tenant, utility services as well as property taxes. To the extent any of those prorations are not feasible at closing, the prorations shall be made after the determination of the applicable amounts.
Proration of rent refers to the process of adjusting the amount of rent owed based on the actual number of days a tenant occupies a property in a given rental period. This adjustment is necessary when a tenant moves in or out on a day that does not coincide with the start or end of the usual rental period, typically one month.
You should use proration of rent in situations where:
To write a proration of rent, follow these steps:
Example:
Monthly rent: $1,200
Days in the month: 30
Move-in date: April 10Daily rate: $1,200 / 30 = $40
Prorated amount for April: $40 x 21 = $840The tenant will pay a prorated rent of $840 for their occupancy from April 10 to April 30.
Contracts that typically contain proration of rent include:
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Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A proration clause allows for the adjustment of expenses, benefits, or liabilities based on the proportion of time or usage specified in the contract, ensuring equitable distribution among parties. This clause is commonly used in agreements involving shared resources or responsibilities, such as rent, insurance, or utility fees, to account for partial periods of service or usage.
A qualified income offset is a provision in partnership or limited liability company agreements that ensures partners or members with a deficit capital account balance receive an allocation of income or gain to restore the deficit to zero, thereby preventing unintended imbalances in their capital accounts. This clause is designed to comply with IRS regulations, maintaining the partnership's tax classification and ensuring proper allocation of tax burdens and benefits among partners or members.
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