Question

Albert finally found a buyer for his five-plex and closing is set for August 8th. At closing, four of Albert's tenants have already paid their $987.50 monthly rent and one of the units remains unoccupied. What will the rent proration be assuming the 365-day method and that the closing day belongs to the seller?

Answer 1

Cant figure this one out.

Answer 2

Credit the buyer $2,931, debit the seller $2,931.

Explanation:

Consider the provided information.

At closing, four of Albert's tenants have already paid their $987.50 monthly rent and one of the units remains unoccupied.

`987.50 * 4 units=3950`

There are 31 days in August.

`(3950)/(31)=127.419`

The closing is set for August 8th.

31-8 = 23 days

Therefore, the rent proration will be:

`127.419* 23\approx 2931`

Hence, Credit the buyer $2,931, debit the seller $2,931.