Proration in residential leasing refers to the process of adjusting the rental cost to reflect a period shorter than a full month. This typically arises when a lease commences or terminates on a day other than the first or last day of the month. For instance, if a tenant occupies a property for only 15 days of a 30-day month with a standard monthly rent of $1000, the individual would only be responsible for $500, reflecting the portion of the month the property was actually occupied.
The practice ensures fairness and accuracy in billing, aligning charges directly with the period of occupancy. It is particularly beneficial for both landlords and tenants in situations involving move-ins mid-month or lease terminations that do not coincide with the month’s end. Historically, this method has evolved from manually calculated adjustments to sophisticated software integrations within property management systems, offering streamlined and transparent financial accountability.
