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Rent Special Cost Calculator

Rent specials reduce effective rent — quantify true cost to landlord and net effective rent.

$
$
$

Effective rent / mo

$2,154.17

Total concession value

$2,950

Discount %

0.10%

How the math works

Concession value = months free × rent + deposits + fees. Effective = (gross − concession) / months.

1 × $2,400 + $300 + $250 = $2,950 concession. ($28,800 − $2,950) / 12 = $2,154 effective = 10.2% off.

How to Use

  1. Enter asking rent.
  2. Enter months free.
  3. Enter reduced deposit savings.
  4. Enter waived fees.
  5. Enter lease months.
  6. Read effective rent and total cost.

Frequently Asked Questions

Typical rent specials?

1 month free on 12-month lease: standard. 2 months free on 13-month (pre-leasing): lease-up tactic. Waived application fee ($50-100): minor. Waived admin/move-in fee ($200-500): common. Reduced deposit or deposit alternative ($100-400 savings): common. Gift card ($100-500): common. Combined package: $1,500-3,500 value typical. Concession 'visibility': first month free broadcast = powerful signal.

Effective rent calc?

Asking $2,400 × 12 = $28,800 over year. 1 month free: pay 11 × $2,400 = $26,400. Effective monthly rent $2,200 (8.3% discount). 13-month lease with 1 mo free: 12 × $2,400 = $28,800 over 13 months = $2,215/mo effective. Landlord goal: keep effective rent near market while using sticker rent high. Market perception matters for comp analysis.

Concession recognition?

GAAP: rent income recognized ratably over lease (straight-line). Concessions reduce revenue evenly, not in month given. On P&L: $28,800 ÷ 12 = $2,400/month (GAAP) vs $2,167/month cash (actual). Deferred rent line item. REITs report ratably (straight-line). Private owners often report cash (concessions hit in month given). Investor/underwriter views both.

Stick rate?

Tenants who take concession + stay full lease: 80-90%. Early exit: forfeit concession (typically by lease clause — 'concession clawback'). Early exit stick rate: 40-70% (depends on market). Tenant breakage incentive: $1-3k clawback = extended tenancy motivation. Renewal after concession lease: 40-55% (tenants expect new concession — harder to renew at full rate). Concession discipline is operator skill.

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