1. What is the Rent Calculation?

The rent calculation for business real estate in the Philippines is based on the area of the property multiplied by the rental rate per unit area. This simple formula helps businesses estimate their monthly rental expenses.

2. How Does the Calculator Work?

The calculator uses the basic rent formula:

Where:

• \( Area \) — Property area in square feet or square meters
• \( Rate \) — Rental rate per square foot or square meter in Philippine Peso (PHP)

Explanation: The calculation multiplies the total area of the property by the rental rate per unit area to determine the monthly rent.

3. Importance of Rent Calculation

Details: Accurate rent estimation is crucial for business budgeting, financial planning, and comparing different commercial property options in the Philippines.

4. Using the Calculator

Tips: Enter the property area, select the unit (square feet or square meters), and input the rental rate per unit. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are typical rental rates in the Philippines?
A: Rates vary by location (Makati, BGC, etc.) and property type, ranging from ₱500-₱3000 per sqm/month for prime locations.

Q2: Should I use square feet or square meters?
A: In the Philippines, square meters are more commonly used, but some properties may quote rates in square feet.

Q3: Are there additional charges beyond base rent?
A: Yes, many commercial leases include VAT (12%), maintenance fees, and other charges that aren't reflected in this basic calculation.

Q4: How does location affect rental rates?
A: Prime business districts (Makati CBD, BGC, Ortigas) command higher rates than suburban or provincial locations.

Q5: What's the difference between gross and net rent?
A: Gross rent includes all charges, while net rent is just the base rate before additional fees and taxes.