Last month’s rent

Example

A tenant moving in on September 1, 2026 at $1,600 a month pays $4,800 at signing: first month’s rent, last month’s rent and a $1,600 security deposit. When the tenant gives notice to leave the following August, August’s rent is already paid. If the rent rose to $1,680 in the meantime, the landlord may ask for the $80 difference, depending on the lease and state law.

In a lease it looks like…

At signing Tenant shall pay the first month’s rent of $1,600, last month’s rent of $1,600, to be applied to the final month of the tenancy, and a security deposit of $1,600.

By state

Some states count prepaid last month’s rent toward the security deposit limit, so a landlord cannot always collect both in full, and Massachusetts requires interest on last month’s rent held in advance. Check your state’s deposit rules before collecting both.