I shifted to Delhi in 2019 and was asked to pay three months' rent in advance. I did not quite like the idea, but since I was unable to find a good place apart from it, I agreed to pay for it. My rent was Rs 14,000, so I gave Rs 14,000 plus Rs 42,000, a total of Rs 54,000 that month. I did not know at that time how to calculate one month rent paid in advance, so I asked my colleagues about it. In India, no one follows any rules for advance rent. They just ask for a particular amount or three to six months’ rent in advance.
How do I account for rent paid in advance?
Before making any advance payment, make sure you record everything in a document. This rent paid in advance is like an asset. Let me explain its meaning with an example. Suppose you have rented a place for Rs 1 lakh, and the rent to be paid per month is Rs 20,000. So if you have paid the current month’s rent and also four months’ rent in advance. The extra, i.e., Rs 80,000, will be considered an asset. You can use this money to pay the next four months' rent or use it during a crisis (you can use it to pay the rent only in this case).
The basic formula to know
One month's rent paid in advance is = Weekly rental divided by 7 (days) x 365 (days) divided by 12 (months)
You can use this formula to know how to calculate one month rent paid in advance.
Read More:How Many Months Rent in Advance is to be Paid?
What should be a advanced deposit for a rental 2bhk or 1bhk
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices

Intracity Shifting-Upto 25% Off
Check Prices

City Tempo-Upto 50% Off
Book Now
Related Questions
Leave an answer
You must login or register to add a new answer .
How to Calculate One Month Rent Paid in Advance?
Shiva
67.9k Views
1
2 Year
2023-04-05T10:57:18+00:00 2023-04-17T23:34:35+00:00Comment
Share