{"id":11371,"date":"2019-11-18T17:47:57","date_gmt":"2019-11-18T22:47:57","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=11371"},"modified":"2023-07-22T11:36:41","modified_gmt":"2023-07-22T15:36:41","slug":"what-is-net-effective-price","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/what-is-net-effective-price\/","title":{"rendered":"What is Net Effective Price?"},"content":{"rendered":"\n
The Net Effective Price is the monthly rent paid by a tenant to the landlord after factoring in free rent incentives included at lease signing. The term is common when searching for apartments for rent in NYC, especially during the off-peak winter season when landlords increasingly offer rental incentives. You can find a deeper discussion of net effective rent on our rental guide<\/a>. <\/p>\n\n\n\n Here is a simple example. When a landlord is asking for $3600 monthly gross rent, but is offering 1 month free on a 12 month lease. The net effective rent is the gross rent * (12 months – 1 free month) \/ (12 months). In this case, $3600 * 11\/12 = $3300 net effective.<\/p>\n\n\n\n Net effective pricing is useful for comparing rent in a building offering renter incentives to a building that is not. However, keep in mind the net effective is not guaranteed after the initial lease period – in fact without further negotiation, you can expect to pay the gross rent after the initial lease period.<\/p>\n\n\n <\/p>\n
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