Landlord’s Guide to Setting Weekly vs. Monthly Rent: Calculations and Cost Considerations
Discover how to calculate and compare weekly (PW) and monthly (PCM) rent for your property or room. Learn how to factor in electricity, gas, and internet bills to set the perfect rental price for maximum returns.
Landlord’s Guide to Setting Weekly vs. Monthly Rent
As a landlord, determining whether to charge rent on a weekly (PW) or monthly (PCM) basis is essential to ensure your property yields the desired returns. To make an informed decision, it’s crucial to understand the conversion process between these two rent structures, as well as the impact of additional costs such as electricity, gas, and internet bills.
Understanding PCM and PW Rent
Rent is typically quoted either per calendar month (PCM) or per week (PW). Charging rent on a PCM basis provides a stable monthly income, which can simplify budgeting and financial planning. Conversely, a PW structure might appeal more to renters who prefer breaking down costs into smaller, more manageable weekly payments.
Converting Monthly Rent to Weekly Rent
If you want to know what a monthly rent would look like on a weekly basis:
- Multiply the monthly rent by 12 to find the annual rent.
- Divide the annual figure by 52 to get the weekly rent.
Let’s say you have a 2 bedroom property in Brighton, the average rent for this type of property is around £1,448 a month (according to the private rental market data from July 2024), as you’ll be renting out one of the rooms, you can use 50% of the monthly rent as rough base amount, remember you might want to take into consideration the bills as part of the rent, £724, then multiply by 12 to get £8688 a year, then divide by 52 to get the weekly rent of around £167.
Quick Reference: PCM to PW Rent Table
| Monthly Rent (PCM) | Weekly Rent (PW) |
|---|---|
| £500 | £115 |
| £600 | £138 |
| £700 | £162 |
| £800 | £185 |
| £900 | £208 |
| £1000 | £231 |
| £1100 | £254 |
| £1200 | £277 |
| £1300 | £300 |
| £1400 | £323 |
| £1500 | £346 |
Converting Weekly Rent to Monthly Rent
To determine the monthly equivalent of a weekly rent:
- Multiply the weekly rent by 52, which gives the total annual rent.
- Divide the annual rent by 12 to calculate the monthly rent.
Let’s take the same example of a 2 bedroom property in Brighton, which would be on average £167 a week. Multiple £167 by 52, then divide by 12 to get the monthly rent of around £724.
Quick Reference: PW to PCM Rent Table
| Weekly Rent (PW) | Monthly Rent (PCM) |
|---|---|
| £150 | £650 |
| £160 | £693 |
| £170 | £737 |
| £180 | £780 |
| £190 | £823 |
| £200 | £867 |
| £210 | £910 |
| £220 | £953 |
| £230 | £997 |
| £240 | £1040 |
| £250 | £1083 |
Accounting for Additional Costs
When setting your rental price, it’s essential to consider additional costs that may need to be covered, such as:
- Electricity Bills: Include an estimate of monthly or weekly electricity costs based on past usage.
- Gas Bills: Factor in the cost of heating, particularly during colder months.
- Internet Bills: High-speed internet is often expected, so consider whether this cost will be included or charged separately.
If these utilities are included in the rent, you may need to adjust the rent amount accordingly to ensure that your expenses are covered while remaining competitive in the rental market.
The average electric bill in the South East of UK in the last financial year (April 2023 to April 2024) was around £1,351, and £1,278 for the gas bill, if we use the same method to break this down into a monthly cost the 2 bedroom property, this would be around £56 a month for the electric bill each person, and £53 a month for the gas bill. Finally, the average internet bill of 2024 so far is around £15 a month.
So a rough ballpark of what you could charge for your extra room in a 2 bedroom property on a weekly and monthly basis would be the follow:
| Bills for a 2 bedroom property in Brighton | Weekly (PW) | Monthly (PCM) |
|---|---|---|
| Rent | £167 | £724 |
| Electric bill | £13 | £56 |
| Gas bill | £12 | £53 |
| Internet | £4 | £30 |
| Total | £196 per week | £863 per month |
Understanding the Local Rental Market
It’s recommended to research your local rental market to ensure your property is priced appropriately. Rent prices can vary widely based on location, property size, and amenities. Use our online rent calculator to get an estimation and adjust accordingly based on your rent setup as your renter might not use the space space or energy as equally as yourself so might consider not splitting everything 50%.