Paying Rent – Weekly VS. Fortnightly VS. Monthly.

People are often confused about the calculation of rent payments; this is because it is not as straight forward as might be first thought.

It is important to remember that while rent may be quoted at the weekly rate in the first instance, the calculation for monthly payments is not simply to multiply by four. This is because the disparity in the length of different months must be taken into account. Remember there are not an equal number of days in every month, not exactly 4 weeks in each month and not precisely 52 weeks in a year.

Here at All About Rentals, as we are not a member of the REIV, we calculate the monthly figure by the following calculation -

Weekly amount x 52 weeks of the year divide by 12 months of the year = The monthly figure

Example – $380 x 52 weeks divide by 12 months = $1647.00

Regardless of whether you are paying weekly, fortnightly or monthly at the end of each year you have paid the exact same amount – taking into consideration a few dollars due to rounding the monthly figure up.

An example of this -

Property is $380 per week.

If you paid weekly = $380 x 52 weeks of the year = $19,760.00

If you paid fortnightly = $720 x 26 fortnights of the year = $19,760.00

If you paid monthly = $1647 x 12 months of the year = $19,764.00