Phone rings: “Chris. I have some tenants that want to move in this weekend. How do you handle the rent?”
Ah, the mid-month move-in. They really are not that hard to deal with. In fact, they are really no different than any other tenant. Except;
Regardless of what day they move in I always collect the security deposit and a full month’s rent when I give them the keys.
On the first of the following month, I then charge them the pro-rated fee for their previous “short” month.
Quick example: Rent is $1,000 a month with a $1,000 security deposit requirement. They move in on March 20, 2008.
On move in I collect $2,000.
On April 1 I collect $322.50 ( $1,000/31 days = $32.25 per day x’s 10 days)
And obviously on May 1 I collect $1,000.
This way I know that they have the money to move in and that I am getting much of my rent money up front. To me, it’s non-negotiable. I don’t want someone moving in and then not pay rent right away and I’m only holding about $700 less than I could be.
Just my $0.02 on the mid-month move-in for your rental property!