What to Expect at Move-Out When You've Prepaid Last Month's Rent
If you paid a last month's rent deposit when you moved in, this article explains how and when those funds are applied as you approach your move-out date, and what (if anything) you'll need to pay for your final month.
What Is Last Month's Rent?
When you signed your lease, you may have paid an additional deposit labeled as "last month's rent." These funds are held separately from your security deposit and are specifically intended to cover rent at the end of your tenancy.
Which Month We Apply It To
Which month your last month's rent gets applied to depends on your move-out date:
Move-out date on the 11th or later → We apply your last month's rent to your final month at the property.
Example: Move-out on 6/15 → funds applied to June rent.
Move-out date on the 10th or earlier → We apply your last month's rent to the prior full month, and you'll owe a prorated amount for your final month.
Example: Move-out on 6/5 → funds applied to May rent (full month); you'll owe prorated rent for 6/1–6/5.
This approach prevents a full month's deposit from being used for just a few days of rent, and keeps your account cleaner through the close-out process.
When Funds Are Applied
We cannot apply your funds until the rent charge posts on the 1st of the applicable month. Our team applies the funds between the 1st and the 5th of that month.
If you log into your tenant portal between the 1st and the 5th and see a balance that doesn't match the notice we sent you, don't worry — we haven't applied your last month's rent yet. It will be applied shortly.
What You'll Pay
You'll receive an email from MoveZen Accounting the month before your applicable month. That email will include a Financial Summary showing:
- Your last month's rent on file
- The rent charge for the applicable month
- The net amount (if any) you still owe, or the credit that will remain
Please only pay the amount listed in that email. If the amount due is $0, no payment is needed.
Autopay — Important!
If you have autopay set up, please turn it off before the 1st of your applicable month. Depending on how your autopay is configured (balance due vs. flat payment), the system may charge you automatically even after we've applied your last month's rent.
We are unable to modify autopay settings on your behalf. If you have co-tenants with their own autopay, please make sure theirs is turned off as well.
What If I Overpay or Have a Credit Balance?
If you end up paying more than needed, or if your last month's rent exceeds the final rent charge, the unused funds will be held with your security deposit. Any refund is processed as part of your security deposit settlement after move-out, not before.
We cannot issue partial refunds prior to the completion of the move-out process.
What This Summary Does Not Cover
The Financial Summary in your email is an estimate based on current information as of the date it's sent. The actual amount owed or refunded may change if:
- Additional payments are made
- Your move-out date changes
- Additional charges post to your account (utilities, damages, fees, etc.)
The summary is for planning purposes only and does not reflect your final move-out settlement or any security deposit refund amount.
Questions?
Reply to your Last Month's Rent Application email or reach out to the MoveZen Accounting team. We're happy to walk you through your specific situation.