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What is Payment Frequency?

What is Payment Frequency?


The payment frequency in a lease agreement is how often the lessee makes payments, whether monthly, quarterly, annually, or anything in between.

Payments can occur at various intervals

The contract will include all the necessary payment terms when you enter into a lease agreement. In addition to stipulating how much will be paid, the agreement will designate a payment frequency, meaning how often payments are made.

Depending on the agreement, payments may be made monthly, quarterly, annually, or on any other schedule agreed on by the two parties. The agreement may also list specific dates by which payments must be made. For example, a lease that requires quarterly payments may require those payments to be made by January 1, April 1, July 1, and October 1.

The payment frequency doesn’t necessarily impact the amount the lessee will pay over the life of the lease. However, defining the payment frequency is necessary to set expectations between the parties.


For example, suppose a lease agreement has a total payment amount of $24,000 for the year. The amount that the lessee pays doesn’t change. It could come in the form of one $24,000 payment, two $12,000 payments, four $6,000 payments, or twelve $2,000 payments.

What’s important here?

The lease agreement includes the payment terms, which stipulate a monthly payment frequency. The payment frequency is important because a failure to make payments at the agreed-upon time could result in a breach of contract, resulting in late penalties and a right of the lessor to terminate the contract.