Leasing Logistics: When to Use BPOA's Offer to Rent, Start Dates, and Prorated Rent

As leasing season picks up, housing providers face familiar—but important—questions:

• Should I hold the unit for a prospective tenant, and if so, how do I protect myself?
• What happens if a tenant wants to start the lease mid-month?
• How should I handle prorated rent?
• Do I need to use an Offer to Rent, or can I go straight to the lease?

BPOA provides tools and templates to help you manage these decisions efficiently and confidently. This article walks you through how to use our Offer to Rent form, how to negotiate start dates, and how to handle rent when leases don’t begin on the first of the month.

What is the BPOA Offer to Rent form?
The Offer to Rent is a pre-lease agreement that allows you to accept a holding deposit while finalizing a lease with an applicant. It is especially useful when:

• The applicant has been selected, but you’re not yet ready to issue the lease

• The unit is still occupied or undergoing repairs

• The applicant needs time to secure co-signers or finalize move-in plans

• You want to take the unit off the market temporarily while confirming details

The form allows you to specify how the holding deposit will be applied (e.g., toward screening fees, the security deposit, or first month’s rent), and includes language protecting you from financial loss if the applicant backs out. “Lost rental damages” are calculated at 1/30th of the monthly rent per day the unit was held off the market.

Once signed by both parties, the unit is formally removed from the rental market, and expectations are clearly documented.

When not to use the Offer to Rent
You don’t need to use the Offer to Rent form (and shouldn’t) if:

• You’re ready to issue the lease immediately and expect prompt signature

• You don’t plan to collect any funds until the lease is signed

• You want to continue marketing the unit and accept backup applications

Signing an Offer to Rent means the unit is considered off the market while you and the applicant finalize next steps. If you want to maintain flexibility to consider other applicants, this is not the form to use.

Lease start dates and prorated rent
Tenants sometimes ask to begin leases mid-month, but you are not required to adjust the lease term to match a preferred move-in date. Rent is owed based on the lease start date, not the date the tenant decides to move in.

If you agree to a mid-month lease start (e.g., June 15), you have two common options for handling rent:

Option 1: Prorate the first month

• Lease begins June 15

• Monthly rent is $3,000

• Tenant pays prorated rent for June based on occupancy:
  $3,000 ÷ 30 × 16 days = $1,600 due for June

• Full rent begins in July

Option 2: Collect full rent upfront, prorate month two

• Lease begins June 15

• Tenant pays the full $3,000 for June

• July rent is reduced by the number of days not occupied in June (14 days):
  $3,000 ÷ 30 × 14 days = $1,400 credit
  July rent = $1,600

This second approach, prorating the second month, is preferred by some BPOA members for simplicity. It avoids collecting a non-standard first rent payment and ensures full rent is collected upfront in case of delays or cancellations.

Either method is acceptable. The key is to clearly document the lease start date, possession date (if different), and rent schedule.

Best practices for a smooth leasing process

• Use the Offer to Rent when you need to reserve the unit before the lease is ready and want to take it off the market

• Skip it if you plan to continue marketing the unit or collect no funds before lease signing

• Communicate clearly about start dates, deposits, and timelines

• Decide in advance how you’ll handle rent proration

• Document everything in writing to avoid confusion later

Need help? BPOA members can download the Offer to Rent form from the Rental Housing Forms Library, and call or e-mail the office with any questions! We're happy to help.