07 · Net Effective Rent

What you'll actually pay each month.

NYC landlords advertise gross rent and bury concessions in the fine print. Spread the free months across your lease to see your real monthly number — the one your budget actually feels.

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Lease terms

Gross monthly rentThe advertised rent before any concessions

Lease termUsually 12 or 24

months

Free monthsConcession from landlord

months

How NYC concessions work: a "1 month free on a 12" listing means you pay full rent for 11 months and $0 for 1 — but lenders, brokers, and many landlords quote net effective rent, which spreads that discount evenly across the full term.

Your real rent

Net effective rent

$3,750

Per month, averaged across the 12-month lease.

Gross rent

The advertised price

$4,500 / mo

Months you actually pay

2 free months

10 of 12

Total paid over lease

10 months × $4,500

$45,000

Monthly savings vs gross

~16.7% effective discount

$750

Total concession value

$9,000

Heads up: at renewal, landlords usually price off the gross rent, not the net effective — so a "free month" lease can turn into a sharp jump in year two.

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