How to Calculate Gross Rent
Different landlords have different policies on whether the landlord or the tenant pays for the utility bills each month. These differences in policies can lead to misleading rent prices. For example, an apartment renting for $450 a month appears cheaper than an apartment renting for $550 a month, but if the second apartment pays for all of the utilities while the first does not, the second apartment likely offers the better deal. The gross rent includes the average utilities in the monthly price to eliminate these discrepancies.
Instructions
- 1
Estimate the total utility costs including electricity, water and natural gas.
2Subtract any allowance given by the landlord from the average utility bills to find the amount the renter is responsible for each month. For example, if the landlord pays the first $50 of utilities and the average monthly utilities equals $230, subtract $50 from $230 to get a total of $180 in utilities the renter is responsible for each month.
3Add the average utilities to the monthly rent to calculate the gross rent. In this example, if the monthly rent rate equals $500, add $180 to $500 to find the gross rent equals $680.
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