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

Answer:

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

Step-by-step 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.

$987.50 \times 4 units=3950$

There are 31 days in August.

$\frac{3950}{31}=127.419$

The closing is set for August 8th.

31-8 = 23 days

Therefore, the rent proration will be:

$127.419\times 23\approx 2931$

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