🧮 Calculating Daily Rent

Basic Daily Rent Formula

For Monthly Rent:

Important: Use actual days in specific month, not average 30 days.

Examples for Different Month Lengths:

31-day month (January, March, May, July, August, October, December):

• Monthly rent: $2,400
• Daily rate: $2,400 ÷ 31 = $77.42/day

30-day month (April, June, September, November):

• Monthly rent: $2,400
• Daily rate: $2,400 ÷ 30 = $80.00/day

February (28 days non-leap year):

• Monthly rent: $2,400
• Daily rate: $2,400 ÷ 28 = $85.71/day

February (29 days leap year):

• Monthly rent: $2,400
• Daily rate: $2,400 ÷ 29 = $82.76/day

For Weekly Rent:

Example:

• Weekly rent: $560
• Daily rate: $560 ÷ 7 = $80.00/day

For Fortnightly Rent:

Calculating Prorated Amount

Formula:

Counting Days:

• Inclusive counting: Count both start and end dates
• Example: Moving in June 15, end of month June 30
• Days: 15, 16, 17... 30 = 16 days (not 15)

Worked Examples

Example 1: Moving In Mid-Month

• Weekly rent: $650
• Monthly equivalent: $650 × 52 ÷ 12 = $2,817
• Move-in date: March 20th
• March has: 31 days
• Days occupied: 20th to 31st = 12 days
• Daily rate: $2,817 ÷ 31 = $90.87
• Prorated rent: $90.87 × 12 = $1,090.44

Example 2: Moving Out Mid-Week

• Weekly rent: $480, paid Fridays
• Last rent paid: Friday (for week ahead)
• Move-out date: Tuesday (4 days later)
• Unused days: Wednesday, Thursday, Friday = 3 days
• Daily rate: $480 ÷ 7 = $68.57
• Refund due: $68.57 × 3 = $205.71

Example 3: Full Month Calculation

• Monthly rent: $1,800
• Move-in: February 1st
• Move-out: February 14th
• Days occupied: 14 days
• February days: 28 (non-leap year)
• Daily rate: $1,800 ÷ 28 = $64.29
• Prorated rent: $64.29 × 14 = $900.06

Rounding Conventions:

• Standard: Round to nearest cent
• Daily rate: Keep extra decimal places for accuracy
• Final amount: Round final prorated amount to two decimal places
• Fairness: Rounding should not consistently favor one party

Special Considerations

Advance Payments:

If rent paid in advance for full period but tenant leaves early:

• Calculate prorated refund for unused days
• Refund typically deducted from bond or paid separately
• Must account for exact move-out date

Rent Arrears:

If rent behind when moving out:

• Calculate total owing including prorated final period
• Landlord can claim from bond through Tenancy Services
• Clear accounting essential for dispute resolution

Utilities:

• Power, water, internet may also need prorating
• Check bills and calculate daily rates similarly
• Final bills should reflect actual usage to move-out date

💰 Bond, Final Payments, and Agreements

Bond and Prorated Rent

Bond Basics in NZ:

• Maximum: 4 weeks' rent for unfurnished, 6 weeks for fully furnished
• Lodged: With Tenancy Services within 23 working days
• Purpose: Security for unpaid rent and damage beyond fair wear and tear
• Return: Within 23 working days after tenancy ends (if no disputes)

Bond When Moving In Mid-Period:

• Full bond due: Regardless of partial first period
• Not prorated: Bond calculated on full weekly/monthly rent
• Example: $600/week rent, move in Thursday = bond is full $2,400 (4 weeks), not prorated

Bond When Moving Out Mid-Period:

• Full bond returned: If property in good condition
• Not reduced: Partial final period doesn't reduce bond amount
• Deductions: Only for damage or unpaid rent, not partial period

Final Payment Scenarios

Scenario 1: Bond Covers Final Rent

• Prorated final rent is less than bond held
• Landlord deducts final rent from bond
• Remaining bond returned to tenant
• Example: Bond $2,400, final prorated rent $800, tenant receives $1,600

Scenario 2: Final Rent Paid Separately

• Some landlords prefer separate payment
• Tenant pays prorated amount directly
• Bond returned in full (if no damage)
• Clearer accounting, preferred by some

Scenario 3: Rent Already Paid in Advance

• Tenant paid for period extending past move-out
• Prorated refund calculated for unused days
• Refund processed with bond return or separately

Tenancy Agreement Considerations

Notice Period Requirements:

Periodic Tenancies (most common after fixed-term):

• Tenant notice: 21 days minimum
• Landlord notice: 90 days minimum (42 days in specific circumstances)
• Notice in writing: Using Tenancy Services form or written letter
• Move-out date: Determines final prorated period

Fixed-Term Tenancies:

• End date set: In tenancy agreement
• Automatic transition: Becomes periodic unless notice given
• Early termination: Both parties must agree (or tenant pays until replacement found)

Payment Terms in Agreement:

• Payment frequency: Weekly, fortnightly, or monthly
• Payment date: Day of week or month
• Payment method: Automatic payment, direct credit, cash (not recommended)
• Prorating clause: Some agreements specify proration method

What Should Be In Writing:

• Agreed move-in or move-out date
• Prorated rent calculation showing breakdown
• Payment amount and due date
• Bond deduction details (if applicable)
• Confirmation of payment received

Dispute Resolution:

If disagreement over prorated rent:

• First: Try to resolve directly with landlord/tenant
• Evidence: Provide calculation breakdown and dates
• Mediation: Free mediation through Tenancy Services
• Tribunal: Tenancy Tribunal if mediation fails (small filing fee)
• Records: Keep all communications, agreements, and payment evidence

Tenancy Services Resources:

• Free advice line: 0800 TENANCY (0800 836 262)
• Online bond lodgement and refund applications
• Template forms for notices and agreements
• Dispute resolution and mediation services
• Information sheets on tenant and landlord rights

🏘️ NZ Scenario and Renter Checklist

NZ Scenario: Emma Moving Into Wellington Flat

Background:

• Emma: 24, starting new job in Wellington
• Moving into 3-bedroom flat with 2 existing flatmates
• Weekly rent for whole flat: $900 ($300/person)
• Move-in date: Tuesday, June 18th
• Rent paid: Weekly on Mondays by automatic payment

First Payment Calculation:

Partial Week (June 18-23):

• Days: Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday = 6 days
• Emma's daily rate: $300 ÷ 7 = $42.86/day
• Emma's prorated rent: $42.86 × 6 = $257.16

Bond Payment:

• Bond: 4 weeks × $300 = $1,200
• Due at move-in (not prorated)
• Lodged with Tenancy Services by landlord

Emma's Move-In Costs:

• Prorated rent (6 days): $257.16
• Bond: $1,200.00
• Total due: $1,457.16

First Full Week:

• Monday June 24: First full week starts
• Payment: Full $300 for week ahead
• Continues every Monday thereafter

Flatmate Share Complications:

Emma's flatmates (Josh and Sarah) need to understand:

• Emma only pays for her 6 days in partial week
• They continue paying their $300 each for full week
• Total rent to landlord for that week: $257.16 (Emma) + $600 (Josh & Sarah) = $857.16
• Shortfall that week: $900 - $857.16 = $42.84

How They Handle Shortfall:

• Option 1: Josh and Sarah cover shortfall ($21.42 each for 1 day)
• Option 2: Landlord accepts $857.16 for that week only
• Option 3: Emma pays slight overage to round up and simplify

Lesson: Clear communication prevents flatmate disputes over prorated periods.

Six Months Later - Emma Moves Out:

Background:

• Emma gets job in Auckland, needs to relocate
• Gives 21 days notice (required for periodic tenancy)
• Move-out date: Thursday, December 19th
• Last rent paid: Monday December 16th for week ahead (16-22)

Final Rent Calculation:

• Paid for: Monday 16th through Sunday 22nd
• Occupied: Monday 16th through Thursday 19th = 4 days
• Unused: Friday 20th, Saturday 21st, Sunday 22nd = 3 days
• Daily rate: $300 ÷ 7 = $42.86
• Refund due: $42.86 × 3 = $128.58

Bond Return:

• Bond held: $1,200
• Property condition: Good (minor fair wear and tear)
• No damage deductions needed
• Final rent: Already paid in advance, refund due for unused days

Final Settlement:

• Bond returned: $1,200.00
• Rent refund: $128.58
• Total Emma receives: $1,328.58

Timeline:

• Emma and landlord submit bond refund application online
• Tenancy Services processes within 5 working days (if no disputes)
• Money deposited directly to Emma's bank account

Keys to Emma's Success:

• Documented move-in and move-out dates in writing
• Calculated prorated amounts before moving
• Communicated clearly with flatmates about shared costs
• Kept records of all rent payments
• Left property clean and undamaged
• Gave proper 21-day notice

Renter Checklist

Before Moving In:

• ☐ Confirm exact move-in date in writing
• ☐ Calculate prorated rent for partial period
• ☐ Confirm bond amount required (4 weeks unfurnished, 6 weeks furnished)
• ☐ Understand payment frequency and dates
• ☐ Get calculation breakdown from landlord if provided
• ☐ Budget for prorated rent + bond + first full period
• ☐ If flatting, discuss prorated share with flatmates

At Move-In:

• ☐ Complete property inspection report thoroughly
• ☐ Take photos of property condition
• ☐ Pay prorated rent and bond
• ☐ Get receipt for all payments
• ☐ Confirm bond lodged with Tenancy Services
• ☐ Get copy of signed tenancy agreement

During Tenancy:

• ☐ Pay rent on time as per agreement
• ☐ Keep records of all rent payments
• ☐ Maintain property in good condition
• ☐ Report maintenance issues promptly

Planning to Move Out:

• ☐ Check notice period required (usually 21 days)
• ☐ Give notice in writing with specific end date
• ☐ Calculate prorated rent for final partial period
• ☐ Arrange final property inspection
• ☐ Clean property thoroughly
• ☐ Complete exit condition report

Final Settlement:

• ☐ Calculate final rent owed or refund due
• ☐ Document agreement with landlord on final amount
• ☐ Return all keys
• ☐ Provide forwarding address for bond return
• ☐ Submit bond refund application (both parties sign)
• ☐ Follow up if bond not returned within 23 working days

If Disputes Arise:

• ☐ Document issue clearly with dates and calculations
• ☐ Attempt to resolve directly first
• ☐ Contact Tenancy Services for free mediation
• ☐ Keep all correspondence and evidence
• ☐ File Tenancy Tribunal claim if needed

Final insight: Prorated rent in NZ is proportional rent for partial rental periods when moving in or out mid-period. Calculation: daily rent = rent ÷ days in period, prorated = daily × days occupied. Weekly rent standard in NZ, monthly equivalent = weekly × 52 ÷ 12. Example: $600/week = $2,600/month, move in 15th of 31-day month = $2,600 ÷ 31 × 17 days = $1,425.81. Bond (4 weeks unfurnished) due in full regardless of partial first period, returned in full if no damage regardless of partial final period. Final payment: prorated rent often deducted from bond or paid separately, depends on agreement. Tenancy agreements: periodic tenancies require 21 days tenant notice, move-out date determines final rent, written documentation essential. NZ law protects both parties through Residential Tenancies Act, Tenancy Services mediates disputes, landlords must account for exact days. Wellington scenario: Emma moves in Tuesday mid-week, pays 6 days prorated ($257) plus $1,200 bond; moves out Thursday, receives bond plus 3-day refund ($129). Renter checklist: document dates, calculate prorated amounts, confirm with landlord, understand bond process, keep payment records. Fair prorating ensures tenants only pay for days occupied, landlords receive appropriate rent, disputes prevented through clear calculation.