What is net effective rent vs. gross rent in NYC?

Question

Accepted Answer

This is one of the most misunderstood concepts in the NYC rental market.

Gross rent is the actual monthly rent you pay every month — the full price on the lease
Net effective rent is a lower advertised figure that factors in a free rent concession, such as one or two months free

Example: An apartment with a gross rent of $3,000/month offered with 2 months free on a 12-month lease has a net effective rent of $2,500/month — but you still pay $3,000 on the 10 months you do pay.

Why this matters:

Your lease will show the gross rent amount
Future rent increases are based on the gross rent, not the net effective figure
Always ask: "What is the gross rent on the lease?"