Shop Rent Security Deposit Calculator
Before you sign a shop lease, work out the real money you will pay on day one. Enter the monthly rent, the security deposit in months, the agent commission and the documentation cost to see an itemized upfront total, the effective first-month cost, and the true monthly cost spread over your tenancy.
Itemized upfront breakdown
| Item | Amount (Rs) | Type |
|---|---|---|
| Security deposit | — | Refundable |
| Advance rent (first month) | — | Covers rent |
| Agent commission | — | Not refundable |
| Documentation / stamp cost | — | Not refundable |
| Total upfront payment | — |
How to read the result
- Total upfront payment is the cheque amount you must arrange on day one. Do not confuse it with the monthly rent.
- Non-refundable portion (commission + documentation) is the real cost of starting the tenancy. The deposit should come back to you at the end.
- Effective monthly cost spreads the non-refundable costs over your planned tenancy. On a short tenancy it can be noticeably higher than the rent.
- A longer tenancy dilutes one-time costs. If you plan to stay only 6 months, negotiate the commission down before signing.
What to check before paying a shop deposit
Shop leases in Pakistan usually involve a security deposit (advance, refundable), agent commission (not refundable), and documentation costs such as stamp paper and the written agreement. The headline rent is only part of the story.
- Written agreement: never pay on a verbal deal. Get the rent, deposit amount, increase clause and notice period in a signed written agreement.
- Receipts: take a signed receipt for every payment: deposit, commission and advance rent. Note the mode of payment on each receipt.
- Deposit refund terms: the agreement should state when and how the deposit is returned, and what can be deducted (damage, unpaid bills).
- Annual increase: most shop rents rise 5 to 10 percent per year. Ask whether the increase applies to the deposit as well.
Rule of thumb: your total upfront payment is usually 3 to 8 times the monthly rent. If it is higher, ask for a written breakdown before you pay.
Frequently asked questions
Is the security deposit refundable?
Yes, in a normal shop lease the security deposit is refundable at the end of the tenancy, minus any unpaid rent, utility bills or damage. Make sure the refund terms and any allowed deductions are written in the agreement.
How is agent commission usually charged on shop rent?
Many agents ask for one full month of rent, but the amount is negotiable, especially for longer tenancies. Agree the figure in writing before paying and always take a receipt.
What documents should I get when renting a shop?
Get a written rent agreement or lease with stamp duty as per local rules, signed receipts for the deposit, commission and advance rent, and a copy of the landlord ownership proof or a no-objection certificate if the shop is in a market or plaza.
Why does the calculator spread one-time costs over the tenancy?
Spreading the commission and documentation cost over the tenancy shows the true monthly cost of the shop. On a short lease these one-time costs push the effective monthly cost well above the rent, which is why a longer stay or a lower commission matters.