Calculate free rent concession for real estate investments and properties
Enter monthly rent, lease term, and months of free rent offered. The calculator computes the effective rent after accounting for concessions.
A 12-month lease at $2,500/month with 2 months free results in an effective rent of $2,083/month over the lease term.
To attract tenants in competitive markets, offset tenant improvement costs, or maintain higher asking rent while providing concessions.
For accounting purposes, free rent is spread over the entire lease term, reducing effective rent. Calculate true cost using net effective rent.
Yes, especially in tenant-favorable markets, for longer lease terms, or if you're a creditworthy tenant. Free rent is often easier to negotiate than lower base rent.