How does Arthur handle pro-rata rent

Pro-rata is a calculation of rent that can be applied at the beginning of a tenancy or at the end of a tenancy. This article will explore scenarios in both.

At the beginning of a tenancy

The most common use of this is when clients collect rent on the 1st of every month. Example below A tenancy is due to start on the 25th of the month and the tenancy move-in costs include for example

1. Registered deposit
2. Pro-rata rent from the 25th to the 1st

When adding the tenancy page 3 of the add tenancy screen will allow for this calculation

In the example above, the tenancy start date was 25th of July, which is added in page 1 (tenancy details) during the tenancy creation. The recurring charge above is added starting on the 1st of the next month ie 1st of august cover a full month of rent. Ticking the pro-rate box will then add a one off rent charge related to the period 25th July - 31st July in page 4 below. 

At the end of a tenancy

There are various scenarios where pro-rata at the end of a tenancy is a calculation required by the system.

1. A current tenancy where the tenant extends for few days past their contract end date. In this scenario, the manager will update the tenancy status to ending and enter a new end date. The recurring charge engine will calculate the pro-rata when it comes to generating the next rent.
2. A periodic tenancy is coming to end and the tenant has given the required 1-month notice but is asking to stay on a few more extra days.  In this scenario, the manager will update the tenancy status to ending and enter an end date. The recurring charge engine will calculate the pro-rata when it comes to generating the next rent.
3. A tenancy where the rent is collected on the 1st of the month but the tenancy end date is before the end of the month. This is linked to the pro-rata at the beginning of the tenancy

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