More and more rental listings are being marketed today with the caveat “NET EFFECTIVE RENT.”
NET EFFECTIVE RENT is essentially the rent that a tenant will pay on a monthly basis over the term of a lease given a specific period of FREE RENT on a designated LEASE TERM. In order to arrive at a net monthly rent, the FREE RENT is spread across the term of the lease.
Entering a Listing with Net Effective Rent:
If you are listing a property for rent and you want to promote the Net Effective Rent [NER], instead of the actual rent (most common practice today), you can do so using the check box “Net Effective Rent Used,” located directly under the rent field.
Once checked, you will be prompted to enter the NER parameters in the notes section.
The NER Notes Field will only appear if the NER check box is designated. The first field indicates the length of the required term for the Net Effective Rent to apply. The second and third fields combine to designate the number of weeks or months free that has been calculated to obtain the NER shown.
Under Concessions further down on the page, the FREE RENT check box will automatically be checked once the NER has been entered. If the NER designation is removed at any time, you will be asked if you would like to remove the Free Rent information as well.
Display of Listings advertising Net Effective Rent:
The NER designation will appear on all listings displaying a NET EFFECTIVE RENT. This will include the Listing Display Page, the Listings Results Page, Print Outs and Emails.
On the Listing Results Page (Single Line Form), you can hover your mouse over the NER designation. The mouse over will offer an explanation of the terms needed to qualify for the NER.
On the Listings Page, the terms of the NER designation will be detailed in full under the Concessions Section of the page.
Note: When sending listings to your customers, only the [NER] tag will be shown. Internal reports will have the notes and stipulations.
Searching for Listings with Net Effective Rent:
By default NER listings will appear in any general rental search. So, if you are searching for an apartment with a monthly rent of $4000, the search results will offer you all listings reflecting a gross monthly rent as well as any listings with an NER under $4000/month.
If you select “FREE RENT” only as a search option, your search results will offer all listings with Free Rent as well as any listing being advertised with a NER. By definition, NER is inclusive of Free Rent.
A third option is to exclude all listings reflecting NER.