Understanding how to calculate monthly rent payment is very important. You can be a tenant or landlord, so knowing what rent you must pay or get is crucial so you do not get scammed. There are many ways to figure out the rental cost. Here are some tips that I would like to share with you on this topic.
How Do I Calculate My Monthly Rent?
There are 3 different methods. You can check it below;
Method 1:
Calculate the market value of your property
Try to find out the current market value of your property, then multiply it by a percentage of 2.5% to 3.5% (average percentage) to derive the rental value.
For example, if your property is valued at Rs 75,00,000, 2.5% of this value equals Rs 1,87,500.
Divide the rental value by 12 to get the monthly rent.
Here it will be Rs 1,87,500 / 12 = Rs 15,625 per month.
Method 2:
Compare the rent of similar apartments within your area. This is the easiest way to know the rent of a property. Search for similar properties for rent in your area using trustworthy websites like NoBroker.
Method 3:
The calculation per square foot
In this method, you will need to calculate the rental value based on the property's square footage. But first, you will need to
Find a similar property to yours
Divide its rent by the square footage to determine the per square foot rate.
Use this value for your property's square footage to get your monthly rent.
For example, if a 2-bedroom house with 1000 sq ft rents for Rs 12,000, the rate is Rs 12 per sq ft. For a 1500 sq ft 3-bedroom property, the rent would be Rs 18,000 per month.
I hope this answers your query how to calculate monthly rent payment.
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Mayuri
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2024-03-06T08:18:19+00:00 2024-06-28T20:35:55+00:00Comment
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