Hello everyone,
Still new to forum, so hope I’m not going over old ground. I did a search to no avail, so here goes with the question …
We’re currently renting, and this is how our landlord calculates it:
Weekly rent is $400 per week.
7 days per week = $57.14 per day.
365 days per year = $20,856 per year.
12 months per year = $1,738 per month.In previous places I’ve rented it has always been calculated simply by:
Weekly rent is $400.
4 weeks per month = $1,600 per month.Which is the correct method? Is there any legal requirement for how rent is calculated?
Would appreciate your thoughts on the above, and how you go about calculating the rental payments.
Thanks, Fin.
Originally posted by Fin:In previous places I’ve rented it has always been calculated simply by:
Weekly rent is $400.
4 weeks per month = $1,600 per month.Your landlord is right (although being a little pedantic about the extra little bit) – using your 4weeks/month means there are only 48 weeks in a year and as we know there are 52 weeks in a year.
Annual rent is 52 X 400 = $20800.
Derek
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0409 882 958
Property investment advice and researched property in quality locations available.Fin,
Yes there is a legal requirement on how rent is calculated. The magistrate will go off what is written down and signed off and agreed between both parties in the lease.
Usually residential lease pro-formas have an option of weekly / fortnightly / calender monthly. Your lease will most likely have two of the above scratched out, the other one is the ‘legal’ one.
If the rent is written down specifically in the lease as $ 400 per week, then that is what the rent rate is….converting it to a monthly figure is an additional exercise that has no bearing on the agreed rate of $ 400 p.w.
Agreed ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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