Definition: A landlord-provided incentive that reduces the tenant's effective occupancy cost, such as free rent or a negotiated allowance.
Example
A twelve-month lease advertises $2,000 monthly rent but grants one free month, producing $22,000 in base rent over that year.
Keep the distinction clear
Face rent and effective rent can differ. Compare concessions, timing, lease length, and other charges before comparing properties.
Related terms
Lease · Gross Lease · Market Value
Keep studying
References: FREC Course II syllabus, Session 15
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