Paying Rent PCM or PM?

misstearheus

Can someone please explain in very simplistic Layman's terms, the differences to me in paying Rent every month and per Calendar month... T.i.a.

Claw Hammer

There are lunar months and calendar months. The lunar month is generally shorter than the calendar month so paying by the lunar month means more frequent payments.

dudara

Paying by calendar month means 12 payments over the course of the year.

Paying by month (i.e. every 4 weeks) means 13 payments over the course of the year.

Now...the interesting question is if your landlord wants calendar month or monthly payments. If he wants the latter, then it will cost you more. Your budgeting will also have to be a little better managed.

I had a landlord once who wanted payments every four weeks. As it's easier to set a monthly SO, and so it aligned with my wages, I multiplied the payment amount by 13, divided by 12 and paid him that amount (with his agreement if course)

goz83

Paying every calendar month....so lets say the 1st day of each month will result in 12 payments per year, because there are 12 months per year.

Paying per month, lets say every 4th Monday will result in 13 payments per year, as there are 52 weeks per year, divide by 4 and you get 13.

In my opinion, it's a very sneaky way to get an extra payment per year.

davo10

goz83 wrote: »

Paying every calendar month....so lets say the 1st day of each month will result in 12 payments per year, because there are 12 months per year.

Paying per month, lets say every 4th Monday will result in 13 payments per year, as there are 52 weeks per year, divide by 4 and you get 13.

In my opinion, it's a very sneaky way to get an extra payment per year.

How is it "sneaky"?, rent is paid in advance so when the op pays, he/she has the benefit of the property for the next four weeks, some of which will possibly overlap the second year of the tenancy meaning that in the second year there may be one less payment.

misstearheus

Aww thanks folks ye're very very good but lots n' lots of info n' maths there for my teeny tiny brain! Would I be right in saying to pay every month / every 4 weeks would be to literally pay every 4 weeks, whereas PCM, would be whenever the end of the months occurs be it in 4 weeks time or in 5 weeks time? Have I that much right?! Eeughh I think it's the other way around. Can't get it right in my head!

davo10

Most if not all LL request rent be paid on the same date the lease begain each month thereafter, it is easier for everyone concerned. But it is pretty easy to set up a standing order to go out every fourth week if necessary. Your LL should clearly lay this out on the lease if this is the way it is to be done.

Despite the suspicion that you are being taken advantage of, you are not, when you pay four weekly in advance, you get four weeks of tenancy for your rent payment.

goz83

davo10 wrote: »

How is it "sneaky"?, rent is paid in advance so when the op pays, he/she has the benefit of the property for the next four weeks, some of which will possibly overlap the second year of the tenancy meaning that in the second year there may be one less payment.

It's sneaky in many cases because the same rent is paid per 4 weeks as would be paid per calendar month. So, if you are paying 2k every CM, the rent is 24k per year. If you pay 2k every 4 weeks, the rent is 26k per year. Lots of people get caught out by this, or just think....ah sure it's only a loss of a day, or two each month. Well, those 1 or 2 days add up to a full months rent each year.

davo10 wrote: »

Most if not all LL request rent be paid on the same date the lease begain each month thereafter, it is easier for everyone concerned. But it is pretty easy to set up a standing order to go out every fourth week if necessary. Your LL should clearly lay this out on the lease if this is the way it is to be done.

Despite the suspicion that you are being taken advantage of, you are not, when you pay four weekly in advance, you get four weeks of tenancy for your rent payment.

Don't assume you're not being taken advantage of. Sure, you are paying for 4 weeks of tenancy at a time, but it's better to for a calendar month at a time if the payment is going to be the same....ie...2k.

Samuel T. Cogley

Any LL who requests 'monthly' payments and means every 4 weeks or lunar months is on something. Surely this is just over-complicating 'monthly' in the ad?

AlmightyCushion

I've never heard of anyone using the word month to mean 4 weeks. Unless they say they are looking for payment every 4 weeks then it's safe to assume that they once a month. Saying monthly and meaning every 4 weeks is a load of bollocks.

joeguevara

goz83 wrote: »

It's sneaky in many cases because the same rent is paid per 4 weeks as would be paid per calendar month. So, if you are paying 2k every CM, the rent is 24k per year. If you pay 2k every 4 weeks, the rent is 26k per year. Lots of people get caught out by this, or just think....ah sure it's only a loss of a day, or two each month. Well, those 1 or 2 days add up to a full months rent each year.



Don't assume you're not being taken advantage of. Sure, you are paying for 4 weeks of tenancy at a time, but it's better to for a calendar month at a time if the payment is going to be the same....ie...2k.

Apologies. The above is quite correct.

Tigger

joeguevara wrote: »

Its an extra week in the year...not an extra month! You will never be charged an extra months rent.

It's an extra "month"
52/4 is 13 so 13 "monthly" payments are incurred by paying every 4 weeks
There are 52/12 or 4 1/3 weeks in a month.

Michael D Not Higgins

AlmightyCushion wrote: »

I've never heard of anyone using the word month to mean 4 weeks. Unless they say they are looking for payment every 4 weeks then it's safe to assume that they once a month. Saying monthly and meaning every 4 weeks is a load of bollocks.

I have worked in some industries which use a 4 week 'period' for reporting reasons. This ends up with 13 periods in a year and sometimes the staff were also paid on a period basis. It was never called a month though.

AlmightyCushion

Michael D Not Higgins wrote: »

I have worked in some industries which use a 4 week 'period' for reporting reasons. This ends up with 13 periods in a year and sometimes the staff were also paid on a period basis. It was never called a month though.

Same as. They were just called periods as well, never referred to as months apart from by staff sometimes when talking about wages.