In rent, PA is an abbreviation that means Per Annum. It indicates the total rent amount for a full year.
Understanding "Per Annum"
The term "Per annum" is a Latin phrase. As defined, it means annually or each year. When used in the context of agreements or contracts, like a rental lease, "per annum" specifically refers to recurring obligations or amounts that apply throughout the entire year of the agreement.
In simpler terms, if your rent is quoted as a PA figure, it tells you the total amount you are expected to pay over 12 months.
Rent Quoted as PA
While most residential rental properties quote rent on a monthly basis, commercial leases or sometimes larger residential properties might state the rent per annum.
For example:
- Monthly Rent: $1,500 per month
- Annual Rent (PA): $18,000 PA ($1,500 * 12 months)
If a lease agreement states the rent is "$24,000 PA," it means the total rent for one year is $24,000. To figure out the monthly payment, you would divide the PA amount by 12.
$24,000 \div 12 = \$2,000$ per month.
Key Takeaway
When you see "PA" in a rent figure, remember it signifies the annual cost, not the monthly one. Always clarify how the rent is payable (usually monthly installments) even if the total annual amount is quoted using "PA."
