How is monthly rent calculated in London

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:

weekly rent x 52 weeks = rent per annum (pa, or per year)
annual rent / 12 months = monthly rent

So the monthly rent for the above example of £200pw is:

£200pw x 52 = £10,400pa
£10,400 / 12 = £866pcm

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!

Please feel free to comment or email us at mail@redresidential.com if you have any other queries. And of course please check out our available properties… the prices for which are quoted per week…