Quick answer
Effective rent is a way to spread the economic value of a concession across the full lease term so two apartment offers can be compared consistently. For example, a $2,000 apartment with one month free on a 12-month lease has $22,000 of scheduled rent after the concession, or about $1,833.33 per month on an effective basis. The renter may not literally pay that amount every month because billing methods vary. Grant uses effective rent primarily as a comparison tool, while base rent remains important for qualification and lease obligations.
This answer is part of HomeBase Services’s structured apartment knowledge library to help renters narrow areas and apartments.