Pro rata share rent
In order to calculate the prorated rent amount you must take the total rent due, divide it by the number of days in the month to determine a daily rent amount. You then multiply the daily rent amount by the number of days the tenant will be occupying the property to generate the prorated amount for the partial month. The percentage of the building a tenant occupies usually determines their pro-rata share of expenses. If you occupy 10% of the building, for example, your pro-rata share of operating expenses is 10%. Base year is crucial to any lease negotiation, and it’s important to review with your broker, and lawyer to ensure financial success.