Home
Back
Rent Per Square Foot Per Month Formula:
| From: | To: |
Monthly Rent Per Square Foot is a standard metric used in real estate to compare rental prices across different properties and locations. It represents the cost of renting one square foot of space for one month.
The calculator uses the following formula:
Where:
Explanation: This calculation converts the annual rent into a monthly basis and then divides by the total square footage to determine the cost per square foot per month.
Details: This metric is essential for comparing rental properties of different sizes, budgeting for commercial or residential space, and making informed real estate decisions. It helps tenants and landlords understand the true value of the space being rented.
Tips: Enter the total annual rent amount and the square footage of the property. Both values must be positive numbers. The result will show the monthly rent cost per square foot.
Q1: Why calculate rent per square foot?
A: It allows for fair comparison between properties of different sizes and helps determine if you're getting good value for the space you're renting.
Q2: What is a typical rent per square foot?
A: This varies greatly by location, property type, and market conditions. Commercial spaces typically have higher rates than residential properties.
Q3: Should I include common areas in square footage?
A: For commercial leases, verify whether the square footage includes common areas (gross leasable area) or only usable space (net leasable area).
Q4: How does this differ from price per square foot for purchase?
A: Purchase price per square foot is a one-time cost, while rent per square foot is a recurring monthly expense for the duration of the lease.
Q5: Are there additional costs not included?
A: This calculation only includes base rent. Additional costs like utilities, maintenance, property taxes, and insurance may apply depending on the lease terms.