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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
- Enter asking rent.
- Enter months free.
- Enter reduced deposit savings.
- Enter waived fees.
- Enter lease months.
- 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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