Pro-rata rent
Pro-rata rent is a proportional rent charge covering only the days a tenant occupies a rental property during a partial rental period. Under the Tenant Fees Act 2019, landlords in England may not request more than one month's rent in advance as a condition of a tenancy; where a tenant moves in mid-month and the landlord wants rent collected on a fixed date, a pro-rata first payment is the only compliant way to bridge the gap.
When does pro-rata rent apply?
Pro-rata rent arises in three main situations. First, at the start of a tenancy when a tenant moves in on any day other than the rent due date, the first payment covers only the occupied days until the first full rent period begins. Second, at the end of a tenancy when a tenant vacates mid-period, rent is due only for the days of actual occupation. Third, when a rent due date changes during a tenancy, for example when a tenant switches from weekly to monthly payments and an alignment payment bridges the transition.
From working with self-managing landlords across the UK, the start-of-tenancy scenario is by far the most common source of pro-rata errors. Landlords who charge a full month upfront when the tenant moves in on the 15th are inadvertently requesting advance rent in excess of the one-month cap under the Tenant Fees Act 2019, which is a prohibited payment.
The two UK calculation methods
Both methods are used in UK lettings. The key is to pick one and state it in your assured periodic tenancy agreement.
Exact month method (calendar-accurate)
Daily rate = monthly rent ÷ number of days in the relevant calendar month
Pro-rata amount = daily rate × number of occupied days
Example: monthly rent £1,200, tenant moves in on 15 January (31-day month), first full rent date is 1 February. Occupied days in January: 17 (15th to 31st inclusive). Daily rate: £1,200 ÷ 31 = £38.71. Pro-rata charge: £38.71 × 17 = £658.06.
365-day method (annualised)
Daily rate = (monthly rent × 12) ÷ 365 (or 366 in a leap year)
Pro-rata amount = daily rate × number of occupied days
Same example: daily rate = (£1,200 × 12) ÷ 365 = £39.45. Pro-rata charge: £39.45 × 17 = £670.68.
The exact month method mirrors the calendar and is more intuitive for tenants. The 365-day method produces a consistent daily rate across all months, which suits portfolio reporting. Use the pro-rata rent calculator to apply either method automatically.
The statutory position at move-out
Where a possession notice expires mid-period, for example, a Section 8 notice that results in a court-ordered possession date on the 10th of the month, the Housing Act 1988, section 21 historically prescribed the exact-month calculation method for the final period. Under the Renters' Rights Act 2025, which came into force on 1 May 2026 and abolished Section 21, possession proceeds through Section 8 grounds. The same principle applies. The tenant is liable only for the days of actual occupation in the final period, calculated using whichever method is specified in the tenancy agreement.
Frequently asked questions
Can a landlord charge more than one month's rent in advance as a pro-rata payment?
No. The Tenant Fees Act 2019 caps advance rent at one month. A pro-rata first payment that, combined with a deposit, exceeds the permitted amounts is a prohibited payment regardless of how it is described.
Does pro-rata rent affect the deposit calculation?
No. Deposits are capped at five weeks' rent (where annual rent is below £50,000) under the Tenant Fees Act 2019 regardless of the first rental period. The deposit cap is based on the full monthly rent, not the pro-rata amount.
What if the tenancy agreement does not specify the calculation method?
Use the exact month method, which is the most common in UK lettings and the most intuitive for tenants. Whatever method you use, document it in writing and apply it consistently.
