- To answer a question about a sale transaction on rental property that closes on December 16, you need to calculate how much rent the landlord owes to the buyer for the remaining days of December.
- You can use a formula called prorated rent to calculate the amount of rent that is proportional to the number of days that the buyer owns the property. Prorated rent splits the amount between the previous and new owners of a rental property.
- The formula for prorated rent is: Prorated Rent = (Monthly Rent / Number of Days in Month) x Number of Days Rent Owed
- In your case, the monthly rent is $713, the number of days in December is 31, and the number of days rent owed is 16 (from December 16 to December 31). The closing day is the buyer's, so the landlord owes rent for that day as well.
- Plugging these values into the formula, you get: Prorated Rent = (713 / 31) x 16 = 368.26
- This means that the landlord owes $368.26 to the buyer for the remaining days of December.
I hope this helps you answer your question.