What is calendar monthly rent? (PCM)
Calendar monthly rent is 12 equal payments over a full year of 365 days. It is worked out by Weekly Rent divided by 7 days to get Daily Rent. Daily Rent is then multiplied by 365 days for Yearly Rent. This Yearly Rent figure is then divided by 12 months for Calendar Monthly Rent.
For example if a property is asking $380 per week you would pay $1,651 per month:
380 ÷ 7 = 54.28
54.285 x 365 = 19,814.28
19,814.28 ÷ 12 = 1,651
Some months are longer than others so calculating rent in this way simplifies payments ensuring that the same amount of rent is due each month.
When a property listing advertises the price as PCM this means per calendar month.
When is rent due?
Paying rent per Calendar Month does not mean that rental terms must start on the first of the month. It typically begins on the day of a lease agreement, and rental payments will be due on the monthly anniversary of this date.
Related article: Maintenance in a rental property