When a duplex closes on March 20, how should the rental proration be reflected on the settlement statement for each $800/month unit?

To determine how the rental proration should be reflected on the settlement statement after the closing of a duplex on March 20, it is essential to consider how the rental income and expenses will be adjusted based on the closing date.

Given that each unit in the duplex rents for $800 per month, the total monthly rental income for both units is $1,600. The closing occurs on March 20, which means that the seller is entitled to rental income only for the days they owned the property in March.

To calculate the proration, we determine how many days in March the seller owns the property. From March 1 to March 20, there are 20 days. In a typical month, we can estimate the rental income attributed to those 20 days. Since March is a 31-day month, the daily rental income for the entire duplex is calculated as follows:

1. Monthly rent divided by the number of days in March:

   • Daily rent for both units = $1,600 / 31 = $51.61 (approximately).

2. Multiply by the number of days the seller owned the property in March:

   • 20 days x $51.61 = $1,032.20 (approximately).

Since the