If a buyer closes on a rental property on March 15 and the seller retains ownership until the closing date, how much rental income will the buyer earn in March?

To determine how much rental income the buyer would earn in March after closing on the property on March 15, it's important to first understand the timeframe and how rental income works in relation to ownership.

Since the buyer officially takes ownership of the property on March 15, they will not earn any rental income for the time period before that date. This means the rental income would only apply from March 15 through the end of the month.

If the rental property is generating a consistent monthly income, you would normally calculate the prorated rental income for the time from the closing date to the end of the month. In March, there are 31 days, and the buyer would own the property for 16 out of those 31 days (from March 15 to March 31).

Assuming the monthly rental income is $4,000, the daily rental income can be calculated as follows:

Daily rental income = Monthly rental income / Number of days in the month

Daily rental income = $4,000 / 31 ≈ $129.03

Then, to find the rental income for the 16 days the buyer owns the property in March:

Rental income = Daily rental income x Number of days owned

Rental income = $129.03