Understanding Prorated and Month-to-Month Rent Payments

Overview

When you set up a rent schedule, you can choose Prorated Rent or Month-to-Month Rent, along with one of two End Date Types. This guide explains how each one works, how the amounts are calculated, and what happens at the start and end of a lease.

Before you start

• Whether you prorate at all is your own policy. Haletale doesn't require it.
• Haletale calculates prorated rent automatically only when the tenant applied through Haletale's application flow. Otherwise you work out the amount and enter it yourself.

Prorated Rent

How it works

• First month: charged only for the days left in that month.
• Middle months: full monthly rent.
• Last month: full monthly rent, whether the lease ends mid-month or on the last day of the month.
• Flexible end date: if the lease ends mid-month, you and the tenant agree on how to handle the unused days, for example a refund or keeping the charge.
• Month-end date: the lease ends on the last day of a month and the tenant pays the full final month.

How the first month is worked out

Monthly rent ÷ days in that month × days the tenant is there.

Example 1: Lease March 10 to June 30, $1,500 a month

• March 10 to 31: 22 days, so (1,500 ÷ 31) × 22 = $1,064.52
• April and May: $1,500 each
• June: $1,500, whatever the actual end date

Example 2: Lease August 18 to November 12, $2,000 a month, flexible end date

• August 18 to 31: 14 days, so (2,000 ÷ 31) × 14 = $903.23
• September and October: $2,000 each
• November: $2,000 in full, even though the tenant leaves on November 12. Any refund for unused days is agreed separately.

Month-to-Month Rent

How it works

• First month: always charged in full, whatever the move-in date.
• Middle months: full rent each month. The due date matches the lease start date.
• Last month: always charged in full.
• Flexible end date: the tenant can pick a move-out date that doesn't line up with the monthly cycle. The final month is still charged in full, and any adjustment is agreed separately.
• Month-end date: the lease ends at the next full monthly cycle, with full rent charged.

Example 1: Lease January 15 to April 28, $1,500 a month, monthly end date

• First month (Jan 15 to Feb 14): $1,500
• February and March cycles: $1,500 each
• Last month (April 15 to May 14): $1,500, even though the tenant leaves on April 28. Any adjustment is agreed separately.

Example 2: Lease October 5 to February 20, $2,000 a month, flexible end date

• First month (Oct 5 to Nov 4): $2,000
• November to January cycles: $2,000 each
• Last month (Feb 5 to March 4): $2,000, even though the tenant leaves on February 20. You and the tenant agree how to handle the extra days.

End Date Types

1. Monthly End Date (fixed cycle)

The lease ends on the last full billing cycle. The tenant pays full rent for the final month, whatever the actual move-out date.

Example: lease starts March 10 and ends June 30. The tenant pays full rent for June, even if they leave early.

2. Flexible End Date (custom end date)

The lease can end on any day of the month. The final month is still charged in full, and any adjustment for unused days is agreed separately.

Example: lease starts April 8 and ends August 18. The tenant is still charged for August 8 to September 7, even if they move out on August 18.

Things to watch for

• Leaving before the final month ends: you and the tenant agree separately whether unused days are refunded or kept. Note that Haletale doesn't issue refunds directly. Extra money on a tenant's account is held as a credit against future charges.
• Leap years and month lengths: prorated rent uses the real number of days in the month, for example 28 in February and 31 in July.
• Overlap with the next tenant: if a flexible end date overlaps the next tenant's move-in, you decide whether to adjust rent or find another solution.
• Autopay: make sure automatic payments match the rent model you chose so tenants aren't billed incorrectly.
• Move-out: when the move-out date is reached, the recurring invoice stops and a final invoice is created automatically.

Both models give you flexibility. Knowing how the end date type affects the final payment makes lease changes smoother for you and your tenants.

Questions? Email [email protected].