Texas Prorated Rent Calculator & Laws 2025: Complete Guide

By RentLateFee Legal Team • November 7, 2025 • 11 min read
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Texas Prorated Rent Overview

Texas landlords and tenants enjoy significant flexibility in determining prorated rent calculations, as Texas Property Code does not mandate a specific proration method. However, the Texas Apartment Association and industry best practices strongly recommend using the daily rate method to ensure fairness and prevent disputes in Texas's competitive rental market.

With median rents in Austin exceeding $1,600, Dallas averaging $1,400, and Houston around $1,300, accurate proration calculations can save tenants hundreds of dollars and protect landlords from legal challenges. Our free Texas prorated rent calculator provides instant, industry-standard calculations.

Texas Prorated Rent Laws

Legal Framework

Texas approaches prorated rent through a combination of property codes and common law principles:

Texas Property Code § 92.001 et seq.: Governs residential leases but does not explicitly address proration methods. Instead, Texas follows the principle of "freedom of contract," allowing landlords and tenants to agree on any reasonable proration method in their lease.

Texas Property Code § 92.019: Addresses late fees but indirectly impacts proration by establishing that rent is not considered "late" until after any grace period ends. This affects partial-month calculations when move-in dates coincide with due dates.

Reasonableness Standard: While Texas doesn't mandate a specific method, lease terms must be "reasonable and not unconscionable" under Texas Business & Commerce Code § 2A.108. Courts can void unreasonable proration clauses that systematically overcharge tenants.

Industry Standards in Texas

The Texas Apartment Association (TAA), representing over 70,000 rental units, recommends in its standard lease forms:

What Texas Law Allows

Texas landlords can legally use any of these proration methods IF clearly stated in the lease:

  1. Daily rate (actual days): Recommended by TAA
  2. 30-day month: Allowed but may face challenges if unreasonable
  3. 365-day year: Common for commercial leases
  4. Custom methods: Any method agreed upon, as long as not unconscionable

Important: Even if the lease specifies a method, Texas courts can void it if found to be unreasonably one-sided or deceptive under Texas Deceptive Trade Practices Act.

How to Calculate Texas Prorated Rent

The Daily Rate Method (Recommended)

Formula:

(Monthly Rent ÷ Actual Days in Month) × Days Occupied = Prorated Rent

Example 1: Austin Mid-Month Move-In

Scenario: Apartment in South Congress, $1,750/month rent, move-in March 22

Calculation:

Total move-in costs:

Example 2: Dallas Move-Out Scenario

Scenario: Apartment in Uptown Dallas, $1,500/month rent, 30-day notice given January 8, move-out February 7

Calculation:

Total 30-day notice period rent: $1,874.99

Example 3: Houston Lease Break

Scenario: $1,350/month apartment, breaking lease early with 60-day notice, move-out May 20

Calculation:

Texas-Specific Requirements

Security Deposit Rules (Property Code § 92.101-92.109)

Texas has specific security deposit regulations that affect move-in/move-out proration:

No statutory maximum: Unlike many states, Texas doesn't cap security deposits (though market typically = 1 month's rent)

30-day refund timeline: Landlords must return security deposit within 30 days of move-out, with itemized deductions

Deposit accounting: Must provide written itemization showing:

Penalty for non-compliance: Failure to return deposit or provide itemization within 30 days can result in landlord owing tenant:

Notice Requirements for Move-Out

Texas notice requirements vary based on lease type:

Month-to-Month Tenancies:

Fixed-Term Leases:

Military Personnel (Service members Civil Relief Act):

Rent Due Dates and Grace Periods

Texas Property Code § 92.019 addresses when rent is considered late, which affects proration:

Standard due date: Typically 1st of the month unless lease specifies otherwise

Grace period requirement: Landlords cannot charge late fees until rent is at least 2 full days late

Impact on proration: If move-in date is the 1st and rent is due the 1st, tenant owes full month's rent (no proration unless move-in is after the 1st)

Example clarification:

Common Texas Proration Scenarios

Scenario: College Student Leasing (August Move-In)

University of Texas students often face unique proration situations due to academic calendar timing.

Details:

First month calculation:

Total first payment:

Scenario: Corporate Relocation to Houston

Corporate relocations often involve quick move-ins and employer-paid housing allowances.

Details:

Calculation:

Scenario: Month-to-Month Conversion and Proration

Details:

Rent obligation:

Regional Variations in Texas

Austin Metro

Average rent: $1,600-$1,900/month

Market characteristics:

Dallas-Fort Worth Metroplex

Average rent: $1,400-$1,700/month

Market characteristics:

Houston

Average rent: $1,300-$1,600/month

Market characteristics:

San Antonio

Average rent: $1,200-$1,500/month

Market characteristics:

Best Practices for Texas Tenants

Before Signing the Lease

  1. Review proration clause: Verify calculation method in lease Section typically titled "Rent" or "Payments"
  2. Request move-in cost breakdown: Ask for itemized list before signing
  3. Use calculator: Verify charges with our Texas calculator
  4. Negotiate if unreasonable: If lease uses unfavorable method, request daily rate instead
  5. Document everything: Save all proration calculations and communications

At Move-In

  1. Verify prorated amount: Compare lease terms to actual charges
  2. Get itemized receipt: Request breakdown showing:
    • Prorated rent calculation
    • Security deposit amount
    • Any fees (pet, parking, utilities)
    • First full month's rent (if applicable)
  3. Confirm next payment date: Clarify when first full rent payment is due
  4. Keep records: Save all receipts, emails, and calculations

At Move-Out

  1. Give proper notice: Submit written 30-day notice (or per lease requirement)
  2. Calculate final rent: Know exactly what you'll owe for partial final month
  3. Request final walkthrough: Inspect with landlord to address any issues
  4. Provide forwarding address: Required for security deposit refund
  5. Track 30-day deadline: Landlord must return deposit + itemization within 30 days

Best Practices for Texas Landlords

Lease Agreement Provisions

Include these proration-specific clauses in your Texas lease agreements:

Sample proration clause:

"If the Lease Term begins on a date other than the first day of a calendar month or ends on a date other than the last day of a calendar month, Rent for the partial month shall be prorated based on a thirty (30) day month [OR] prorated based on the actual number of days in that month. The daily rent rate is calculated by dividing the monthly rent by [30 OR the actual number of days in the month], then multiplying by the number of days Resident occupies the premises during that partial month."

Move-In Documentation

Provide tenants before lease signing:

Property Management Software

Texas landlords commonly use:

Challenging Incorrect Proration in Texas

Step 1: Review Your Lease

Verify what calculation method is specified in your lease agreement. Even if you disagree with the method, you're bound by what you signed unless it's unconscionable.

Step 2: Calculate Independently

Use our free calculator to determine what you should have been charged under both:

Step 3: Request Correction

Send written request (email acceptable) to landlord:

"Dear [Landlord Name],

I am writing regarding the prorated rent charged for [Month/Year]. According to my lease agreement, rent should be calculated using [specified method]. However, I was charged $[Amount] when the correct amount should be $[Correct Amount].

[Include your calculation breakdown here]

Please review and adjust my account accordingly. I have attached documentation showing the correct calculation.

Thank you for your prompt attention to this matter.

Sincerely, [Your Name]"

Step 4: Escalate If Necessary

If landlord doesn't respond or refuses correction:

  1. Small claims court: For amounts up to $20,000 in Texas Justice Court
  2. File complaint: With Texas Attorney General Consumer Protection Division
  3. Seek legal help: Texas RioGrande Legal Aid for low-income tenants
  4. Withhold disputed amount: ONLY if you're certain of your calculation and prepared for potential eviction proceedings

Important: Never withhold rent without legal advice. Texas has landlord-friendly eviction laws, and improper withholding can result in eviction even if your proration dispute is legitimate.

Tax Implications for Texas Landlords

Income Reporting

Prorated rent is taxable income for landlords:

Record-Keeping

IRS requires landlords to maintain for 7 years:

Tools and Resources

Free Calculator

Texas Prorated Rent Calculator - Instant calculations showing:

Official Resources

Legal Assistance

Conclusion

Texas's flexible approach to prorated rent gives landlords and tenants freedom to negotiate terms, but also requires careful attention to lease language and calculations. While Texas doesn't mandate a specific method, industry best practices and fairness principles support using the daily rate method for all prorated rent scenarios.

Key Texas takeaways:

  1. Verify proration method is clearly stated in lease before signing
  2. Use daily rate method for most accurate calculations
  3. Understand 30-day security deposit refund deadline
  4. Know your 30-day notice requirements for move-out
  5. Calculate independently using our free Texas calculator

Calculate now: Get your Texas prorated rent amount instantly →

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