The prorated move-out example also shows how a Massachusetts rent invoice can be split between different bank accounts within a household. Our rent invoice move-out example shows how a prepaid last month can be refunded based on the number of days in the month, and the day of the month on which the occupants return possession. The refund owed is $707.15, to be paid out of the funds already received. We add in our final water bill of $42.85. They moved out on day 12 in a month with 30 days, generating a $750 refund. In our rent invoice example, the base rent is $1,250/mo. If the move-out date is significantly later than planned, it’s easier to reduce the refund given than to chase your now departed tenant for additional rent. This technique leaves you in control when move-out date changes, which often happens. After you have possession, you will refund any overpayment. In a pro-rated move-out scenario, the best advice is to collect a full month’s rent for the last month on the first of the month, as normal. On the other hand, if the renter gave you months of notice that they were going to leave on the 12 th of such-and-such month, and you will be in there that afternoon to turn over the apartment, it would be fair to charge them only for the twelve days. For instance, keeping the full month’s rent could make sense if the renter is breaking a lease. It will depend on the particulars of your rental agreement. When a renter moves out mid-month, it may be fair to keep the full month’s rent. Our rent invoice move-in example shows how first month’s rent can be apportioned to the second month based on move-in day. Combined with the lock change fee (in this example, $39.95 being charged after move-in) the balance due is $498.28. $791.67 of their first month’s rent ($1,250) has been applied to the second month. The renters moved in ten days early, on the 20 th day of a month with 30 days in it. In our example, the base rent is $1,250/mo. The balance of this first payment is then credited to this month’s total owed. Actual usage for the first partial month is then calculated and subtracted from the amount paid. The “Move-in Proration” section of the rent invoice lets you enter the amount of “first month’s rent” paid (usually a full rental period), the day of the previous month in which they moved in, and the days in that previous month. The “Move-in Proration” section of the rent invoice may be used for this calculation. Some of this “first month’s rent” must fairly be applied to the second month (first full month of tenancy). But usually we ask the renter to pay “first month’s rent” equal to a full rental period as a basic condition of renting. When a tenant moves in partway through the month, it is fair to charge them only for the days for which they have possession. But be warned: rates tend to increase, so your water sub-bills (which use the previous rate) may permanently lag the actual water bill you pay. Smaller, regular payments will also give your renters more immediate feedback on their usage and conservation efforts. It is usually desirable to bill renters monthly from the point of view of renter cashflow and habituation to paying water bills, especially early in the tenancy. The water submetering law permits billing your renters monthly at the previous municipal rate, even if the municipality or water authority bills you quarterly. This information is needed for compliance with the water submetering statute. The rent invoice has a section dedicated to water, where landlords can give previous and current meter readings, usage for the period, the rate at which usage is billed, and the total due. (“The rent is the rent!”) But landlords who submeter utilities will want to prepare and send a rent invoice or water bill monthly. Landlords without pass-through utility charges will not be accustomed to sending a monthly rent invoice. The last billed rate is given as the billable rate for this period. Our rent invoice water bill example shows how the bill is measured in cubic feet (change this to suit), and the current and previous meter readings are given to calculate usage.
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