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Rent Concession Calculator
Convert asking rent plus concessions (free months, move-in credits) into effective monthly rent. This lets you compare apartments fairly when landlords advertise different concession structures.
Often 13 to amortize 1 free month
Effective monthly rent
$2,115
face rent adjusted for concessions
Total concession value
$5,000
Effective discount %
15.38%
Months actually billed
11
How the math works
Rent concessions like "1 month free" or "2 months free" are spread across the lease term to calculate effective rent. On a 13-month lease with 1 month free, the effective monthly rent is 12/13 of the face rent. Landlords use concessions to maintain comp-worthy face rates while still filling the unit in soft markets.
Most concessions apply as: (a) one specific month free (often the first), (b) amortized monthly discount, or (c) a one-time credit at signing. The total effective cost is the same, but cash flow timing differs. Use effective rent when comparing across units with different concession structures.
How to Use
- Enter the advertised asking monthly rent.
- Enter how many free months are offered.
- Set the lease term — 13 months is common for 1 month free.
- Include any one-time moving or signing credit.
- Compare effective rent against the asking rate.
Frequently Asked Questions
Why do landlords give concessions instead of lowering rent?
Face rent sets the comp — once you lower published rent, all future renewals benchmark against the lower number. Concessions keep the published rate high while still filling units in soft markets.
Do concessions reset at renewal?
Usually yes. At renewal, you're offered the face rent (or a new concession). Many tenants see a large jump at lease year 2. Ask upfront what renewal will look like.
Is a 1-month concession worth moving for?
On a $2,000/mo, 12-month lease, 1 free month saves ~$167/month effective — meaningful but easily offset by moving costs, new deposits, and utility setup. Run the numbers.
Can I negotiate bigger concessions?
In soft markets, yes. Landlords prefer 1-month concession over 10% rent cut because it preserves comps. Ask for 2 months free on a 13-month lease, especially for larger units or older inventory.
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