What does net effective rent mean? NYC apartment rental guide.

So the most confusing thing to folks looking to rent in NYC for the first time is our tradition of net effective rent. This is a form of landlord concession, a discount or promotion for new renters.

Right now a large percentage of rents that you see on sites like StreetEasy or RentHop have promotional prices.

So a very typical net effective rent is one month free– calculated this way: Rent multiplied by 11 divided by 12.

So what confused people is that there is also a gross rent. The net reflects the value over the term of the lease, the gross is what you (usually) pay each month.

So what people ask all the time is…why can’t I just pay the net rent. I do see this with some very large landlords, especially on longer term leases, but is is VERY rare in most of Manhattan. Many landlords want to make sure the tenant is able to pay the regular rent not just the promotional price.

So my advice.. .think of that free month as a chance to pay down debt or take a vacation. I used to almost never list net rents, but now it is becoming so common and expected, fewer people find it confusing.

Moving to NYC? Want an agent who will have your back? Email suzfindsnyapts@gmail.com or call 929-429-0240.