One of the questions we are most often asked when going about our business letting studios in Central London is “how is monthly rent calculated?”, so in this post we will explain…
Most landlords want to be paid rent monthly. However rent in London is usually quoted as a price per week (pw) e.g. £200pw, and tenants are often surprised when they are informed that this does not equate to £800 per month. This is because there are not always 4 weeks in every month. Some months are 31 days long, others 30, 29 and even 28.
So to simplify things landlords charge rent per calendar month (pcm) which means that you pay the same amount every month regardless of the length of the month. This is calculated as follows:
So the monthly rent for the above example of £200pw is:
As there are always 52 weeks in a year (ok- less one day on leap years!) this means that if a tenant paid their rent weekly instead of monthly, they would still pay exactly the same over the course of a 6 or 12 month contract.
How is monthly rent calculated- quick converter
£150pw = £650pcm
£200pw = £866pcm
£225pw = £975pcm
£250pw = £1083.33pcm
£275pw = £1191.66pcm
£300pw = £1300pcm
So now you won’t have to ask how is monthly rent calculated in London! We hope that this clears up some of your questions. The main thing to remember is that if you pay weekly or monthly, you will always pay the same amount over a 6 or 12 month contract, and you aren’t being bamboozled by landlord or agents!