What is the difference between prepaid and first month's rent?

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When you create a property listing on BoligPortal, you need to specify the various amounts you charge in connection with the rent. 

The amounts you specify will be included in the total move-in price shown in your listing - including the first month's rent and the last months' rent , which is prepaid upon move-in. 
Move in price is first month's rent + prepaid rent + deposit + utilities.png

What is prepaid rent?

Prepaid rent is an amount that covers the last rent payments in the rental period - for example, the last 3 months before the tenant moves out of the property. 

Prepaid rent is your security during the notice period

Prepaid rent is your security to ensure that rent is paid when the rental contract is terminated. Therefore, your tenant will not have to pay rent as usual during this period, as you will instead use the prepaid rent. 

However, it is entirely optional whether you want to charge prepaid rent, If you do not wish to charge prepaid rent, simply enter the amount as '0', when you create the listing. 

You may charge a maximum of 3 months' prepaid rent 

To comply with the rental law's provisions for prepaid rent, you may charge an amount equivalent to a maximum of 3 months' rent, excluding utilities. 

For example, if the rent is 5,000 DKK excluding utilities, you can charge a maximum of 15,000 DKK in prepaid rent. In this case, your tenant will not pay rent for the last 3 months they live in the rental property. 

Remember to stop the collection when the tenant terminates the rental contract

If you have charged prepaid rent, remember to stop your rent collection for the number of months you have charged prepaid rent. If you collect rent via BoligPortal, you can stop the collection by following this guide.

If you have not charged prepaid rent, simply collect rent as usual up to and including the month your tenant moves out.

 

What is first month's rent?

The first month's rent is an amount that, unlike prepaid rent, covers the rent payment for the first month.

First month's rent can vary depending on the move-in date

If the rental agreement begins on the 1st of the move-in month, the first month's rent will be equivalent to the monthly rent.

If the rental agreement begins in the middle of a month, you can choose to charge a reduced amount for the first month's rent – for example, half of the monthly rent.

You simply agree on the specific amount directly with the tenant.

 

What is move-in price?

The move-in price is the amount listed on your property listing that the tenant must pay to move into your rental.

Both the prepaid rent and the first month's rent are included in this amount. The total move-in price depends on the amounts you specify when creating a listing.

If you need help on how to specify the various amounts during the listing creation, we recommend reading point 5 in this guide.

 

What is the move in price?.png

 

In the above example, the tenant must pay 48,775 DKK to move into the rental. This amount includes 9,695 DKK for the first month's rent and 9,695 DKK for 1 month's prepaid rent.

Once the tenant has paid this amount, they will not need to pay the first and last month's rent, as this is already covered in the move-in price – the amount the tenant has paid in advance along with the deposit.

 

 

 

 

 

 

 

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