Money & tax
How to Prorate Rent for Move-Ins and Move-Outs (3 Methods)
How to calculate prorated rent for a partial month: the days-in-month, 30-day and 365-day methods, worked examples for move-in and move-out, and which to use.
What lodging taxes are
Lodging taxes go by many names: hotel occupancy tax, transient occupancy tax (TOT), hotel and motel tax, tourist development tax, room tax. They are charged on stays in hotels and, in most places, in other rented lodging such as furnished apartments. The word that matters is "transient". The taxes are aimed at visitors, so long stays are often treated differently.
The 30-day rule
The most common approach exempts a guest who stays long enough to be treated as a resident rather than a visitor. Thirty consecutive days is the usual line. Three examples show how much the details matter:
- Austin, Texas defines a permanent resident as someone who has the right to occupy a room for at least 30 consecutive days, as long as there is no interruption of payment. A guest who gives the hotel written notice at check-in of an intent to stay 30 consecutive days is exempt from the start; one who does not pays tax for the first 30 days. Source: City of Austin
- Lehigh County, Pennsylvania treats permanent resident status as effective for the rental period in which the 30th consecutive day is completed, continuing as long as occupancy is uninterrupted. Source: Lehigh County
- Illinois issued a ruling in 2018 that the exclusion turns on how long the guest continuously occupies the room, not on who pays, so a change of payer mid-stay did not end it.
Not everywhere uses 30 days
Florida charges its transient rental tax on rentals of six months or less. A guest who signs a bona fide written lease for continuous residence of more than six months is exempt; without one, the first six months are taxed and later months are exempt while the stay continues. Counties add their own tourist development taxes. Source: Florida Department of Revenue
Other places use their own lengths and exceptions, and a few tax long stays regardless. That is why a single rule for your whole portfolio rarely works.
Questions to answer for each place you operate
| Question | Why it matters |
|---|---|
| What length of stay creates the exemption? | 30 days is common, not universal |
| Is a written commitment at check-in required? | It can decide whether the first 30 days are taxed |
| Does the exemption apply from night one or only after the threshold? | It changes the first invoices |
| What breaks continuity? | A gap in payment, a move between units, or a checkout may restart the count |
| Does it matter who pays? | Some places look only at occupancy |
| Can tax already collected be refunded once the threshold is met? | It affects extensions that cross 30 days |
| Are there separate exemptions (government, military, students)? | They may need documents on file |
| Do state, county and city taxes follow the same rule? | Often they do not |
Running it day to day
Get the commitment in writing. Where a written statement of intent at check-in matters, build it into your occupancy agreement.
Watch extensions. A 21-night stay that is extended to 45 nights may cross into the exemption. Know whether you owe the guest a refund of tax already charged, and invoice the rest correctly.
Watch unit moves. Moving a resident between units, or between your own properties, may or may not break continuity. Ask before you do it.
Keep the records. Exemptions are only as good as the paperwork behind them: the agreement, the dates, and proof of continuous occupancy and payment.
Set it up once per place. In Staylio, tax jurisdictions, tax profiles and tax types are set up per place and applied to each booking, and the sales tax report totals what you collected for filing.
Frequently asked questions
Do you pay hotel tax on stays over 30 days?
In many U.S. states and cities, no: a guest who stays 30 consecutive days or more is exempt from hotel occupancy tax. But the rules differ by place, some places use a different length (Florida uses six months), and some require written notice at check-in.
Does corporate housing have to collect lodging tax?
Often yes for stays shorter than the exemption threshold, and sometimes for longer stays depending on the place. Furnished apartments are usually treated like other lodging for these taxes. Check with each jurisdiction.
What is the permanent resident exemption?
It is the common name for the rule that exempts a guest from hotel occupancy tax once they have the right to occupy a room for a set number of consecutive days, usually 30.