How to calculate rent in London? London residential properties advertised for rent in Rightmove, the asking rent is usually per calendar month and/or per week. For example, a one-bedroom apartment in London Mayfair is £550 per week. This article focuses on how to calculate rent in London for residential properties only. This is an essential “know-how” for new properties owners.
Calculate rent per month
You take £550 per week x 52 weeks then divide by 12 months. The rent per month is £2383.33
Calculate weekly rent
Say, a two bedrooms apartment in London Regent Street is advertised as £3000 per calendar month. To calculate the rent per week from the monthly rent of £3000, you take £3000 x 12 months then divide by 52 weeks. The rent per week is £692.31.
New to London property letting business
If you are thinking of starting a London property letting business or new to this business, knowing how to work out your rent is essential so that you can work out your profit on your letting.
For example, to make a profit on your London apartment, you must achieve a minimum rent of £3500 per month.
You work out your rent per week that is £3500 x 12 months divided by 52 weeks gives you £807.69 per week. To achieve your minimum rent, you may ask your estate agent to advertise your London apartment for £810 per week rent or more.
Using a limited company for your properties letting business
If you are using a limited company for your properties lettings, you must also comply with the Companies House requirements. You must deliver the following documents to Companies House every year.
You can submit your company documents online. You would require your company’s authentication code to do so. The authentication code is the electronic equivalent of your company’s director(s) signatures. Hence, you must keep it safe.
In addition, you must also submit your corporation tax return to HM Revenue and Customs together with your company accounts.
If you require help with your company’s filings, contact our accountants. They will be more than happy to assist you.