Net effective vs stated rent
Net effective rent spreads concessions across the lease term. The stated monthly rent may still be the amount due in normal months, so compare both numbers before signing a lease.
Example
For a 12-month lease at $2,200 per month with one free month worth $2,200, the net lease value is $24,200. Dividing by 12 gives a net effective rent of about $2,016.67 per month.
Common mistakes
Check whether the concession is applied as free rent, a one-time credit or a reduced monthly payment. Also compare move-in fees, parking and utilities, because those can erase part of the concession.
Limitations
Utilities, deposits, parking, amenity fees and local lease rules are not included unless entered as upfront fees.
Last reviewed: 2026-05-17